{"id":34348,"title":"US Considers Google Break-Up After Monopoly Ruling","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-08-14T10:01:35+00:00","modified":"2024-08-14T10:01:35+00:00","canonical_url":"https://stockmark.it/us-considers-google-break-up-after-monopoly-ruling/","markdown_url":"https://stockmark.it/us-considers-google-break-up-after-monopoly-ruling.md","json_url":"https://stockmark.it/us-considers-google-break-up-after-monopoly-ruling.json","category":"IT","categories":["IT","Tech","Technology"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2023/01/google-st-1.jpg?fit=800%2C400&quality=89&ssl=1","format":"news","language":"en-GB","content":"**Google’s** parent company, **Alphabet** Inc., faces potential divestiture of key operations following a landmark ruling by a US federal judge, which found the tech giant guilty of maintaining an illegal monopoly over online search. The US Department of Justice (DOJ) is reportedly weighing the possibility of ordering Alphabet to divest parts of its search business, including the Android operating system and the Chrome web browser, according to Bloomberg.\n\nIn response to the news, Alphabet’s shares dipped 1.1% to $164.18 in after-hours trading in New York.\n\nThe ruling by Judge Amit P. Mehta last week concluded that Google, which commands approximately 90% of global internet searches, leveraged its dominant market position to stifle competition. Judge Mehta highlighted that Google spent $26.3 billion in 2021 alone to secure its search engine as the default option on smartphones and browsers, effectively blocking potential competitors.\n\n“Even if a new entrant were positioned from a quality standpoint to bid for the default when an agreement expires, such a firm could compete only if it were prepared to pay partners upwards of billions of dollars in revenue share,” Mehta wrote in his ruling. He further noted that Google is acutely aware that losing these default positions would significantly impact its revenue, citing internal projections that losing the Safari default could lead to a substantial drop in search queries and billions in lost revenue.\n\nThe ruling sets the stage for a second trial to determine appropriate remedies. Alternatives to a forced break-up could include mandating Google to share more data with competitors or implementing measures to prevent it from gaining an unfair advantage in AI products, Bloomberg reported.\n\nGoogle has announced plans to appeal the ruling.\n\nThis development comes amid a broader antitrust crackdown in the US, with other tech giants like Apple, Amazon, and Meta Platforms (the owner of Facebook) also facing legal scrutiny.\n\nBoth Google and the DOJ have been contacted for comments on the matter.\n\n**Market Implications:** Investors should closely monitor the unfolding legal proceedings, as the potential divestiture of key assets like Android and Chrome could significantly alter Alphabet’s business landscape and revenue streams. The broader antitrust environment also suggests heightened regulatory risks for other major tech firms, which could impact market valuations and investor sentiment in the sector."}