DOJ Shifts Google Antitrust Strategy, Prioritizes Search and Chrome
The U.S. Department of Justice (DOJ) has adjusted its approach in the ongoing antitrust case against Alphabet Inc.’s Google, according to a recent report by Reuters. The DOJ has withdrawn its earlier proposal requiring Google to divest from artificial intelligence firms, including Anthropic, an AI company seen as a competitor to OpenAI. This shift in strategy reflects the DOJ’s recognition of potential complications within the fast-evolving AI sector.
Despite this change, the DOJ, along with a coalition of 38 state attorneys general, remains committed to the broader antitrust case. They are pushing for a court order that would compel Google to sell its Chrome browser and implement other measures. These actions are designed to address what the court previously deemed an illegal monopoly in the search market.
Prosecutors have strongly emphasized the importance of market competition, stating that the legal battle is crucial for safeguarding core values.
The American dream is about higher values than just cheap goods and ‘free’ online services. These values include freedom of speech, freedom of association, freedom to innovate, and freedom to compete in a market undistorted by the controlling hand of a monopolist.
Google has criticized the DOJ’s proposals, arguing that they go beyond the original court ruling and might adversely affect consumers, the economy, and national security. The company, which plans to appeal the decision, has suggested alternative measures, such as relaxing agreements that make Google the default search engine on various devices.
Anthropic, in court documents from February, expressed concerns that the AI divestiture proposal unfairly favored OpenAI, potentially benefiting Microsoft, OpenAI’s partner. Prosecutors acknowledged these worries, indicating that a divestiture could disrupt the development of the AI industry. As a compromise, the DOJ proposed that Google provide advance notice of future investments in generative AI. The case, overseen by U.S. District Judge Amit Mehta, is scheduled to go to trial in April.
This case is one of several antitrust actions against significant tech companies, including Apple, Meta Platforms, and Amazon. Since the re-election of Donald Trump, Google has argued that the DOJ’s regulatory approach could hamper its ability to compete in AI, potentially harming the U.S.’s position as a global leader in tech.
Trump, who continues to push for a crackdown on Big Tech, has appointed veteran antitrust attorney Gail Slater to spearhead the DOJ’s enforcement efforts. While some of the DOJ’s initial proposals from November have been modified, many of their core elements remain in place. For example, the requirement that Google share search query data with its competitors now allows Google to charge a small fee for access, provided the competitors don’t pose a national security risk. This case represents an important development in the regulation of major tech companies in the digital age.
