11/21/2024 | Press release | Distributed by Public on 11/21/2024 09:50
Proposal Follows Federal Court Ruling That Google Has Anticompetitive Monopolies in Online Search Markets
Attorney General Brian L. Schwalb, along with the Justice Department and a bipartisan coalition of 38 state attorneys general, today proposed a robust package of remedies to end Google's unlawful monopoly over internet search engines and to restore competition to benefit consumers.
In December 2020, the Office of the Attorney General (OAG) joined a bipartisan coalition of state attorneys general in filing a lawsuit alleging that Google illegally maintains its monopoly power over general search engines through anticompetitive contracts and conduct. The multistate lawsuit was a companion to an earlier federal antitrust lawsuit the Justice Department filed in October 2020.
In a landmark decision in August 2024, a D.C. federal district court judge ruled that Google violated federal antitrust laws by illegally maintaining a monopoly in online search and search text ads. At issue now are the remedies the court will impose to end Google's improper conduct that has stifled competition and harmed consumers.
"Today's proposal is a significant step towards restoring competition and innovation in the online general search industry, which the vast majority of District residents and businesses rely on," said Attorney General Schwalb. "Free and fair markets are the cornerstone of any healthy marketplace, and I'm proud to join the Department of Justice and my state AG counterparts from both sides of the aisle in this effort to level the playing field for law-abiding companies and increase choice for consumers across the country."
The proposed final judgment, or PFJ, filed with the court seeks to end Google's illegal monopoly and restore competition in several ways. The PFJ would end Google's search distribution contracts and revenue sharing agreements by prohibiting Google from paying to be the initial default search engine on any phone, search access point, device, or browser. The PFJ would also require Google to share its data and information-unlawfully obtained through its monopoly power-with rivals to improve the competitive choices available to consumers. This data would be shared in a manner that safeguards personal privacy and security.
Additionally, the PFJ would require Google to sell Chrome, the Google browser through which a significant percentage of all Google searches are made. Coupled with that request are provisions for additional divestitures, including the Android operating system, if Google fails to comply with specific remedies or if the remedies prove ineffective.
Moreover, the PFJ would prohibit Google from foreclosing competition or self-preferencing through its ownership or control of other products-including Android. Under the PFJ, Google cannot make Google Search or Google AI mandatory on Android devices, interfere with rival distribution, degrade rival quality, or leverage distributors to preference Google. Google must also give publishers the ability to opt out of having their data collected by Google for training Google's AI models or used in Generative AI answers.
The states alone also propose a public education campaign funded by Google to inform consumers about what Google did, why it is illegal, and what choices consumers actually have in search engines. The campaign may include reasonable, short-term payments from Google to users who try non-Google search engines.
The final order establishes a five-member technical committee to implement, monitor, and enforce the remedies for ten years.
A hearing on the proposed remedies is currently scheduled to begin on April 22, 2025 and conclude by May 2, 2025.
The final order is available here.
Judge Amit P. Mehta's opinion from August 2024 is available here.
This matter was handled by Elizabeth Arthur, Assistant Attorney General with the Antitrust & Nonprofit Section.
Joining the District of Columbia are the Attorneys General of Colorado, Nebraska, Arizona, Iowa, New York, North Carolina, Tennessee, Utah, Alaska, Connecticut, Delaware, Guam, Hawaii, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Vermont, Virginia, Washington, West Virginia, and Wyoming.