U.S. Considers a Google Breakup

For the first time since Microsoft about 25 years ago, the U.S. government is considering breaking up an industry giant to save consumers, partners, and competitors from its illegal monopoly and predatory business practices. And it’s not as unlikely as it sounds: Forcing Google to divest itself of its advertising business, Android platform, and/or Chrome web browser would go a long way towards correcting the abuses it’s inflicted via its online search monopoly.

“The Justice Department is evaluating the court’s decision,” a DOJ statement reads. “No decisions have been made at this time.”

Perhaps. But two separate credible reports–in Bloomberg and The New York Times–claim the US. Department of Justice is considering such a change in the wake of its historic antitrust victory against Google. Each cites multiple sources in claiming that the DOJ is now discussing whether forcing Google to split up in some way is the right way forward.

There are other ideas, of course. The government could force Google to abandon backroom deals with Apple and various web browser makers. It could force the company to open Search and/or its AI technologies to rivals. Or there could be some combination of remedies. But what we do know is that the DOJ has petitioned Google competitors and industry experts to see if there’s some consensus. And that it will soon present its proposed remedies to U.S. District Court Judge Amit P. Mehta. There’s a hearing scheduled for September 6 to discuss the next steps in the case.

Naturally, many point to the Microsoft case from two decades ago and note that while the software giant was ordered to be broken up, that never happened, and Microsoft and the government eventually reached a settlement. But many misunderstand the scale of Microsoft’s loss in that case, and we have a better example of a governmental breakup of an industry giant that turned out for the best: In 1984, the U.S. government broke AT&T into 8 separate companies that went on to transform communications in ways the monopolist never would have. That breakup achieved the most obvious goals of antitrust by allowing innovation to happen, improving competition, and lowering costs to consumers.

Would a Google breakup have the same impact? The parallels are obvious enough. But that’s what the DOJ is now debating, and what our highest courts could one day decide.