Background

The US Department of Justice has been investigating Google for antitrust violations since 2020. The lawsuit alleges that Google has used anticompetitive tactics to protect its search dominance and forge contracts that ensure it's the default search engine on web browsers and smartphones.

In August 2024, a US district judge ruled that Google has maintained an illegal monopoly in general search and general search text ads. The ruling centered on the contracts Google has with device makers and browser partners, which use Google as their default search technology.

Proposed Remedy

The DOJ's proposed remedy includes requiring Google to divest its Chrome browser and stop paying partners for preferential treatment of its search engine. The proposal also demands that Google provide prior notification of any new joint venture, collaboration, or partnership with any company that competes with Google in search or in search text ads.

Google has argued that its success in search stems from offering the best search technology and that consumers are easily able to change their default search engine. The company has also stated that it faces competition from Microsoft and others.

Response from Google

Google has responded to the proposal, stating that the DOJ's demands go beyond the court's decision and would harm America's consumers, economy, and national security. The company has also argued that it shouldn't have to divest parts of its business or restrict its investments in search and AI.

Next Steps

The case will now proceed to an appeal process, with arguments scheduled for April. The outcome of the case will have significant implications for the tech industry and the future of online search.