World

US moves to break google dominance

October 10, 2024 3:30 pm

[Source: Reuters]

The U.S. Department of Justice’s proposed remedies to break up Google’s search dominance could weaken its main profit engine and stall its advances in artificial intelligence, even though an outcome may be years away, analysts said.

The DOJ said on Tuesday it may ask a judge to force Google to divest parts of its business such as its Chrome browser and Android operating system, that the Alphabet-owned company, opens new tab used to maintain an illegal monopoly in online search.

It is only one of the many potential fixes prosecutors are considering.

Article continues after advertisement

Barring Google from collecting sensitive user data, requiring it to make search results and indexes available to rivals, letting websites opt out of their content being used to train AI products and making Google report to a “court-appointed technical committee” are also on the table.

The remedies strike at the heart of the internet empire that has made Google synonymous with search and can reduce its revenue while giving its rivals more room to grow.

Analysts warned that the AI-related remedies could disrupt Google’s business when it is already under pressure from startups such as ChatGPT maker OpenAI and AI-powered search engine operator Perplexity.

Google’s U.S. search ad market share is forecast to fall below 50% for the first time in more than a decade by 2025, according to research firm eMarketer.

Other companies likely to benefit from the remedies include search players such as DuckDuckGo and Microsoft Bing, which opens new tabs, as well as AI rivals such as Meta Platforms (META.O), which opens new tabs and Amazon, which opens new tab.