US government seeks to break up Google's search engine monopoly, company faces penalties

From Yahoo Finance: 2025-04-20 20:20:00

Google is facing a threat as the U.S. government seeks to break up the company for operating an illegal search engine monopoly. The case began with hearings to determine penalties, with the Justice Department pushing for remedies to prevent Google from using AI to maintain dominance.

Witnesses, including Google CEO Sundar Pichai, are set to testify in the remedy hearing. The U.S. Department of Justice is seeking significant changes, like banning deals with Apple and forcing a sale of Chrome, to promote competition. Google’s attorney argues these remedies would unfairly benefit inferior rivals.

The landmark lawsuit against Google, filed four-and-a-half years ago, alleges anti-competitive behavior. A federal judge ruled Google had made deals to stifle competition. This trial will decide penalties for Google’s actions in the search market it has led since its founding in 1998.

The Justice Department aims to curb Google’s power, arguing its conduct creates economic havoc. The proposed penalties, supported by past and present regulators, seek to rein in Google’s dominance. The focus on AI in the hearings reflects its potential to reshape the internet, while Google raises concerns about data sharing and browser sale requirements.

The battle over Google’s fate is the biggest antitrust case since Microsoft’s in the late 1990s. Google plans to appeal the ruling identifying its search engine as a monopoly. Meanwhile, a separate antitrust case against Google’s advertising network could lead to another remedy hearing and potential breakup.

Read more: Google faces off with US government in attempt to break up company in search monopoly case