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Google faces proposed changes to business practices following antitrust ruling

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Friday, November 22, 2024

Google faces proposed changes to business practices following antitrust ruling

State AG
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Attorney General Phil Weiser | Official Website

State attorneys general and the Justice Department have put forward a series of measures aimed at dismantling Google's monopoly in internet search engines. This initiative seeks to enhance competition for the benefit of consumers.

The legal action began in December 2020 when Colorado Attorney General Phil Weiser led a coalition of 38 states in filing a lawsuit against Google. The lawsuit alleged that Google maintained its monopoly through anticompetitive contracts and conduct. This multistate lawsuit complemented an earlier federal antitrust lawsuit filed by the Justice Department in October 2020.

In August 2024, a D.C. federal district court judge ruled that Google had violated federal antitrust laws by maintaining its monopoly in online search and search text ads. The current focus is on determining the remedies to address Google's conduct, which has stifled competition and harmed consumers.

"Google’s illegal monopolization of search and search advertising has harmed consumers, thwarted innovation, and undermined the competitive marketplace," said Weiser. "It’s critical that the judge mandate effective remedies that address the harms to competition and provide consumers with the benefits of an open and fair marketplace."

The proposed final judgment (PFJ) submitted to the court outlines several measures to end Google's monopoly and restore competition. It includes ending Google's search distribution contracts and revenue-sharing agreements by prohibiting payments for being the default search engine on devices or browsers. Additionally, Google must share data obtained through its monopoly with rivals while ensuring privacy and security.

The PFJ also calls for divesting Chrome, Google's browser, with further divestitures like Android if compliance fails or remedies are ineffective. Furthermore, it prohibits practices such as making Google Search mandatory on Android devices or interfering with rival distribution.

States propose a public education campaign funded by Google to inform consumers about their choices in search engines, potentially including short-term payments for using non-Google engines.

A technical committee will be established to implement, monitor, and enforce these remedies over ten years. A hearing on these proposals is scheduled from April 22 to May 2, 2025.

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