SAN FRANCISCO (AP) — A federal judge has branded Google as a ruthless monopolist bent on suffocating it competitors. But how do you go about creating...
SAN FRANCISCO — A federal judge has branded Google as a ruthless monopolist bent on suffocating it competitors. But how do you go about creating alternatives to a search engine that's synonymous with internet exploration?
Now, the script has been flipped, with Google facing potential legal constraints, while a resurgent Microsoft has been making early headway in AI with a major helping hand from its investment in OpenAI. In one of the most dramatic scenarios that most experts think is unlikely to happen, Google might be forced to break up its business similar to how AT&T — once known as “Ma Bell” — ended up spinning off its telephone subsidiaries into separate “Baby Bells” more than 40 years ago.
Although Mehta praised the quality of Google's search engine in his ruling and acknowledged the company initially became the people's preferred choice in its early days, he concluded it resorted to unfair tactics to maintain its leadership during the past decade. Google did it, Mehta said, mainly by negotiating lucrative deals to cement a position as the default search engine on the iPhone and wide range of other devices, including PCs.
Mehta's focus on the default search deals in his ruling make it likely he may decide to ban them after the next trial phase is completed, according to antitrust experts. That could have implications for other companies besides Google, especially Apple, which pockets about $20 billion annually from an arrangement that is currently scheduled to continue through 2026, with options to extend the alliance into 2028.
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