US Government Seeks Major Breakup of Google’s Search Dominance Amid AI Disruption

The United States government is intensifying its legal battle with Google, seeking sweeping remedies aimed at dismantling the tech giant’s dominance in the online search market. The case, which could reshape the future of internet search, was the focus of a heated hearing on Friday as both sides presented closing arguments before US District Judge Amit Mehta.

The Justice Department (DOJ) is urging Mehta to impose bold penalties, including a ban on Google paying to be the default search engine on mobile devices and web browsers. It also seeks an order forcing the company to sell off its Chrome browser, a key tool in Google’s ecosystem built nearly two decades ago by its current CEO, Sundar Pichai.

These demands stem from the judge’s 2023 ruling that Google’s search engine constitutes an illegal monopoly, giving it undue control over the internet and stifling competition.

Google vs Government: What’s at Stake?

Google’s legal team is pushing back, claiming that only minor concessions are necessary in light of rapid developments in artificial intelligence (AI). They argue that the emergence of new AI-driven search tools—like those from OpenAI and Perplexity—is already disrupting the industry and threatening Google's dominance.

According to Google, the rise of AI as a competitive force negates the need for such drastic legal remedies. Instead of judicial intervention, Google contends, technological innovation should dictate market shifts.

But the DOJ disagrees. Prosecutor David Dahlquist told the court that AI alone cannot rein in Google's entrenched power. The department argues that Google could exploit its current monopoly to dominate the next frontier—AI-powered search.

“The point is not to kneecap Google, but to kickstart competitors,” said Judge Mehta, who appeared to be searching for a middle ground during the daylong hearing. He plans to issue his final ruling by Labour Day (September 1).

AI, Chrome, and the Default Search Battle

One of the most controversial proposals is the potential divestiture of Chrome, a browser used by billions worldwide. The DOJ believes that separating Chrome from Google would limit the company's ability to gather personal data, weakening its grip on personalised search and digital advertising.

Executives from rival companies like OpenAI and Perplexity have testified that they would be eager to purchase Chrome if the court mandates its sale.

Another key issue is Google's multi-billion-dollar agreements with companies like Apple, which make Google the default search engine on devices such as the iPhone. These deals reportedly cost Google over $20 billion annually—but critics argue they block competitors from gaining any traction.

Apple has strongly opposed the proposed 10-year ban on default search agreements. In court filings, it warned that eliminating these deals would not stop users from choosing Google—and would deprive Apple of crucial revenue it uses for its own research and development.

Apple also stressed that such a ban would not force it to develop its own search engine, which Google critics have long hoped would emerge as a new alternative.

Privacy Concerns and Industry Impact

Beyond the tech giants, a wide array of stakeholders have weighed in on the case.

A group of legal scholars has warned that forcing Google to sell Chrome is too harsh a remedy and represents unwarranted government interference in business.

Former Federal Trade Commission (FTC) officials James Cooper and Andrew Stivers raised concerns about another DOJ proposal—requiring Google to share user data with rival search engines. They argued that such a measure would violate user expectations of privacy and data stewardship.

Meanwhile, the App Association, which represents small app developers, cautioned that the DOJ’s proposed remedies would destabilise the entire tech ecosystem. Startups, it said, often depend on being acquired by bigger companies like Google—a path that could vanish if the tech giant is broken up.

“If Google is torn apart, developers will be overcome by uncertainty,” the association wrote.

A Verdict That Could Shape the Future of the Internet

This landmark antitrust case, nearly five years in the making, marks one of the most aggressive legal challenges to a tech company in decades. While past antitrust efforts—like the one against Microsoft in the 1990s—shaped the software industry, this case could influence the future of search, advertising, mobile technology, and AI.

With Alphabet Inc. (Google’s parent company) valued at around $2 trillion, the ruling could ripple across the global economy. The DOJ hopes to pry open the market so that innovation can thrive without being stifled by Google’s dominance.

Google, for its part, insists that it should not be punished for its success, especially as AI competition is heating up.

As Judge Mehta prepares to make a decision, all eyes are on the US courts. Whether he opts for radical change or incremental reform, the ruling will determine how freely users and companies navigate the digital world in the years to come.

The outcome will not only affect Google’s future—it could redefine the boundaries of competition, privacy, and innovation in the age of artificial intelligenc

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