New Developments in Google's Antitrust Case: US Seeks to Separate Android and Other Products from Google

2024-10-09

Recently, a US district court found Google in violation of US antitrust laws, branding it as a "monopolist" for its efforts to sustain its default search engine status on devices and web browsers. Following this ruling, the US Department of Justice is developing plans to address and rectify Google's anti-competitive practices. Proposed solutions include separating Android, Chrome, and Google Play from the main Google entity.

The US Department of Justice (DoJ) has submitted a new "Remedy Framework" aimed at addressing Google's violations of antitrust laws in the United States. This framework primarily focuses on remedying the damages caused by Google's practices in areas such as search distribution, advertising revenue sharing, generation and presentation of search results, advertising scale and monetization capabilities, as well as data accumulation and usage.

One of the most radical proposals is to prohibit Google from leveraging its products (such as Chrome, Play, and Android) to benefit Google Search and its related products. Additionally, there are suggestions to allow websites to opt out of participating in the training of Google's AI products or being featured in Google Search, such as the AI overview feature within Google Search.

In response, Google stated that the Department of Justice's proposals are overly aggressive and broad, potentially harming the interests of consumers, businesses, and developers. While Google has indicated that it will provide a detailed response to the DoJ's final proposals, it also pointed out that the Department has exceeded the scope of specific legal issues within the case.

Google emphasized its substantial investment of billions of dollars in Chrome and Android. These two products not only facilitate internet access and the use of Google's services but are also provided to users free of charge, including their underlying source code. Google warned that separating Chrome and Android would alter its business model, increase device costs, and weaken the competitive position of Android and Google Play against Apple’s iPhone and App Store.

The following is a summary of the US Department of Justice's proposed solutions addressing Google's anti-competitive practices:

In terms of search distribution and advertising revenue sharing, the Department of Justice believes that Google's influence over search distribution should be eliminated. It is considering restricting or banning default protocols, pre-installation agreements, and other revenue-sharing arrangements related to search. Additionally, both behavioral and structural solutions will be implemented to prevent Google from leveraging its products to benefit Google Search and its related products and features, thereby disadvantaging competitors or new entrants.

Regarding data accumulation and usage, the Department of Justice contends that Google's unlawful actions have enabled it to collect and utilize data, harming the interests of competitors. Therefore, it is considering mandating that Google provide its search index, data, feedback, and models to others through APIs, and to make Google Search results, features, advertisements, and even underlying ranking signals open.

In the generation and presentation of search results, Google's actions have also impaired the functionality of regular search, including generative artificial intelligence. The Department of Justice recommends banning Google from using contracts that diminish competitors' ability to access web content and requires Google to allow websites crawled by Google Search to opt out of any of Google's AI products or features within Google Search.

In terms of advertising scale and monetization capabilities, Google's monopolistic behavior has undermined advertisers' ability to choose search providers and competitors for search ad monetization. Consequently, the proposed solutions include limiting Google's use of ad scale outside of search results and regulating or collaborating on the organization of its advertising content.

Google is set to submit its defense to the court, and it is anticipated that this will be a prolonged legal battle. Regardless, Android and Chrome in the future may differ from their current versions.