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The U.S. Justice Department has reiterated its demand for the breakup of Google’s business interests, citing a federal judge’s prior judgment that the company unlawfully exploited its monopoly in the search market. Reports from The Washington Post and The New York Times indicate that the department is pushing for Google to divest its Chrome web browser, as doing so would crucially dismantle the company’s grip on a major access point for internet users, thereby enabling alternative search engines to thrive.
In addition, the Justice Department has retained a proposal from the Biden administration aimed at prohibiting Google from compensating companies such as Apple and other smartphone manufacturers to designate its search engine as the default option on their devices and browsers. However, the Justice Department has opted against a previous proposal that would have required Google to divest its investments in several AI startups, responding to concerns from Anthropic about their dependency on Google’s financial backing. Instead, the government will implement a notification requirement for Google regarding its AI investments, ensuring federal and state officials are informed prior to any such moves. Notably, the Financial Times recently reported on Google’s significant additional investment of a billion dollars into Anthropic.
Google is anticipated to present its own suggestions for alternative solutions in the ongoing case. The company previously contended that the Justice Department’s original proposals were excessive and indicative of a misguided interventionist approach. Specifically, Google has expressed a desire to maintain its agreements with various partners to distribute its search engine while also allowing those partners the flexibility to pursue deals with other search engines, enabling options such as varying default search engines for Apple devices. Furthermore, browser companies could potentially change their default search engines annually.
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The filing by the Justice Department could signal a shift in how the Trump administration will manage antitrust proceedings involving major tech firms. It may adopt a stringent stance reminiscent of the previous administration, despite some industry leaders having lent their support to Trump’s campaign last year. In a notable development, Google had recently ceased its initiatives aimed at enhancing workforce diversity by terminating specific hiring targets for underrepresented groups. Additionally, the House of Representatives has issued subpoenas to Alphabet and its CEO Sundar Pichai, seeking communications with the Biden administration concerning the COVID-19 pandemic.
The case, overseen by Judge Amit Mehta, who previously classified Google as a monopolist, is set for a hearing where both the government’s and Google’s proposals will be evaluated, with a final resolution expected in April.
Source
www.yahoo.com