Over the years, Google’s vast business empire has been subject to little legal scrutiny, which has allowed it the freedom to develop its own search engine, browser, operating system and a range of mutually supportive hardware products. This highly intersectional business layout has drawn strong attention from government agencies and tech industry rivals, who have tried to gradually dismantle Google’s massive empire.
The latest reports show that Google is under pressure from a number of sources: the European Union, which is investigating whether it is complying with regulatory requirements for big tech companies; the U.S., which has filed an antitrust lawsuit against the company’s search and advertising business; game developer Epic Games, which has called on Google to open up its app store; and Yelp, which has filed a complaint against the company’s local search service. With President-elect Donald Trump about to take office, the future is unclear, but what is certain is that this is one of the biggest crises Google has faced in its history.
Challenges Facing Google
The biggest challenge Google is currently facing comes from the U.S. Department of Justice’s antitrust lawsuit against its search business, which could lead to the breakup of Google’s core business. In August, a federal judge ruled that Google has a monopoly in the online search market. In its statement of case, the U.S. Department of Justice noted that Google had inhibited the ability of competitors to launch search engines by securing its position as the default search engine through multibillion-dollar agreements with companies such as Apple and Mozilla. Judge Amit Mehta agreed, noting that this dominance also allowed Google to raise the price of search ads or prioritize sponsored links in search results.
In an effort to restore balance to the market, the US Department of Justice has proposed a number of significant changes, including requiring Google to sell one of its core products, the web browser Chrome, which has been a core part of Google’s business since its launch in 2008, and potentially turn it over to a court-appointed third party to manage. In addition, the DOJ asked Google not to favor its own search engine or browser in its own products, such as Android, YouTube, and the artificial intelligence chatbot Gemini. Other proposals include opening up Google’s search ecosystem to competitors and allowing websites to opt out of AI Overviews. if Google refuses to accept these proposals, or if these measures are still insufficient to break its monopoly, the DOJ has even suggested that Google consider divesting its Android business.
Meanwhile, Yelp filed an antitrust lawsuit against Google’s search engine, accusing it of giving its own service an unfair advantage in local search results. The European Union has also launched an investigation into Google’s compliance with the Digital Marketplace Act. Recently, Google lost an appeal to avoid a $2.7 billion antitrust fine stemming from allegations that it gave its own services an unfair advantage in shopping results. Google’s app store has also been the subject of allegations. In 2020, Epic Games filed a lawsuit against Google, alleging that it constituted an unlawful monopoly by preventing developers and users from accessing other app stores and prohibiting them from employing an alternative payment processing system in their apps. A jury ultimately found that Google’s app store and its billing system constituted an unlawful monopoly. Judge James Donato ordered Google to distribute third-party app stores through its App Store and to allow those third parties to access all apps within the Google Store for the next three years (unless the developers opted out). Although Judge Donato initially asked Google to implement the order on November 1, Google obtained a temporary ruling delaying implementation of the order, but legal pressure continues to mount.
Meanwhile, Google is also facing another lawsuit from Epic, which alleges that Google and Samsung conspired to suppress the growth of third-party app stores by restricting users to downloading apps from “authorized sources. Google’s ad tech lawsuit could also have a significant impact on its lucrative advertising business, which generated $237.9 billion in revenue in 2023. If the DOJ prevails, the judge may require Google to develop tools that allow third-party companies to use its ad tech and access its customer resources. Even though the trial is nearing its end, a final verdict will still be months away, by which time the Trump administration will have officially taken office.
The outcome of all of these cases could come under a new administration, whose policy positions will have a significant impact on the outcome. The current president, Joe Biden, has taken a hard line on antitrust enforcement, while Trump is expected to adopt a more relaxed regulatory strategy. However, that doesn’t mean Google will be left unscathed. In fact, the Justice Department filed an antitrust lawsuit against Google’s search engine in 2020 during Trump’s term.
Trump has long accused Google of being biased against him in search results, and was especially vocal in the months leading up to the election. He’s threatened to file criminal charges against Google and claimed the search engine was politically biased against then-Vice President Kamala Harris. While Trump said he might “take some action,” he also warned that the Justice Department’s lawsuit could be “dangerous” because “we can’t have other countries having companies like Google “.
Google’s Core Business Will Have to be Overhauled
Even if the lawsuits fail to have a material impact on Google, the tech giant may have to adjust its operating model in response to mounting legal pressure. That may mean being more cautious in business acquisitions or thinking twice about launching other products. In 2019, Microsoft co-founder Bill Gates said that Microsoft missed an opportunity for Android to become the dominant mobile operating system in part because the company was distracted by antitrust trials in the early 21st century.
Signs of change seem to have been felt within Google. In an Election Day memo, Google CEO Sundar Pichai wrote: “No matter who voters choose, we should keep in mind our role – to be a reliable source of information for people of all backgrounds and beliefs through our work, our products, and our business. ” Trump has repeatedly claimed to have spoken with Pichai, which may indicate that Pichai wants to improve relations before Trump takes office.
