Alphabet Inc, the parent company of Google, is facing the possibility of a breakup as the U.S. Department of Justice contemplates actions to address antitrust concerns surrounding the tech giant. The DOJ's consideration of breaking up Google comes after a federal judge ruled against Alphabet in a recent antitrust lawsuit, highlighting the company's dominance in the online search market.
The proposed breakup of Google would mark a significant attempt to dismantle a company for monopolization, reminiscent of the past efforts to break up tech giants like Microsoft. One of the key units that could be targeted for divestment in this potential breakup plan includes the Android operating system, a core asset of Google's tech ecosystem. Additionally, the DOJ is also exploring milder options such as requiring Google to share more data with competitors to level the playing field in the AI products market.
The recent antitrust ruling against Alphabet underscores allegations of Google maintaining a monopoly in online search and advertising through strategic payments to smartphone makers. This practice is said to have hindered competition in the digital space, leading to regulatory scrutiny and potential actions by the government to address these concerns. Despite Alphabet's intention to appeal the ruling, the implications of a forced breakup could have significant repercussions on the tech industry, given Google's status as the world's most-used search engine with substantial annual revenue.