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The US government has threatened to dismantle Google to end its illegal monopoly on online searches.
In a move that sets up a major clash between Silicon Valley and Washington, US lawmakers said the tech giant could be forced into a major restructuring.
Google owner Alphabet could be ordered to sell parts of its business, such as its Chrome Internet browser and its Android operating system.
And, in a court filing released this week, the US Department of Justice (DoJ) said it will seek to ensure that Google cannot dominate the emerging artificial intelligence sector.
But the tech giant, which plans to appeal, said the proposals were “radical” and could stifle American innovation. It comes after a judge determined in August that Google has built an illegal monopoly in a landmark legal case.
Spin-off: Google owner Alphabet could be ordered to sell parts of its business, such as its Chrome Internet browser and its Android operating system.
The Silicon Valley company has become the preferred search engine for Internet users, accounting for about 90 percent of online searches.
The US government accused Alphabet of using its other products to get people to use its search engine, with which it makes money by selling ads.
Google may be forced to stop paying billions of dollars to companies like Apple to have its search engine installed or set as the default on devices.
And to prevent Google’s dominance from extending to AI, the United States can pressure Google to share its indexes, data and models with its rivals.
“It would be a huge change in the way people and businesses use and interact with the Internet in their lives, so this is clearly a high-stakes poker game,” said Ben Barringer, equity research analyst at Quilter. .
‘For now, not much changes, and this will limit investor enthusiasm for Alphabet for this year and most of next, until more is known.
‘This will be a long process with many negotiations still to be carried out. However, the Department of Justice has fired a shot at Alphabet.’
Google said the proposals go far beyond the specific legal issues in this case.
Lee -Anne Mulholland, vice president of regulatory affairs at Google, said: ‘Government overreach in a fast-moving industry can have unintended negative consequences for innovation and American consumers. “We look forward to presenting our arguments to the court.”
The company, which has a valuation of more than $2 trillion, said its search engine has won users with its quality, adding that it faces strong competition from rivals and that other search engines are available.
Alphabet, the world’s fourth-largest company, is under increasing legal pressure from global competitors and regulators.
In a separate case, a US judge ruled that Google must open its Play app store to greater competition, including making Android apps available from rival sources.
The company is fighting another case in the United States seeking the dissolution of its web advertising business. And it faces similar competition challenges in the EU.
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