“U.S. regulators are contemplating a historic move to dismantle Alphabet by splitting it into three independent entities—Google, Android, and Chrome—in an effort to curb monopoly power and foster fair competition in the tech industry”
As per the source Bloomberg, U.S. regulators are considering an unprecedented move in the nation’s antitrust history, particularly within the tech sector. This potential action echoes the breakup of Bell System in 1982, which ended its monopoly in the telecommunications industry by dividing the company into multiple independent entities.
In 2024, American officials are exploring a similar approach with Alphabet, aiming to split its three core businesses—Google, the Chrome browser, and the Android operating system—from the parent company. If this plan is executed, it would mark the first time that the U.S. government has sought to dismantle a major tech conglomerate due to alleged illegal practices aimed at stifling smaller competitors.
Two decades ago, U.S. regulators failed in their attempt to separate Windows from Microsoft during an antitrust lawsuit in the 2000s. However, this time around, the regulators seem more determined. Beyond the potential breakup, the government is also considering requiring Alphabet to share the online search data of billions of users to promote competition, especially in the development of artificial intelligence.
The U.S. government may also demand that Alphabet cease exclusive agreements with smartphone manufacturers and digital platforms—agreements that are at the heart of the lawsuit between the U.S. Department of Justice and Alphabet. Should the breakup proceed, Alphabet might be forced to divest its three main businesses: Google, Android, and Chrome.
Furthermore, U.S. officials are evaluating whether Alphabet should also divest its online advertising division, AdWords, which generates a substantial portion of the company’s revenue. This decision would need approval from Judge Amit Mehta, who has issued key rulings in the case.
If the breakup plan goes forward, it would be one of the most significant antitrust actions since the breakup of AT&T in the 1980s. U.S. regulators hope that such a move will create a more level playing field in the tech industry, particularly as Alphabet holds a significant advantage in artificial intelligence development due to its monopoly in online search.
Additionally, discussions are underway about forcing Google to share its online search data with competitors like Microsoft’s Bing or DuckDuckGo. This measure aims to give other search engines the opportunity to develop their technology and compete with Google.
The biggest question now is whether the U.S. government can successfully dismantle Alphabet’s key business units, and if so, how this will impact the future development of the global tech industry.
