Google, the dominant force in online search, faces increasing scrutiny from the United States Department of Justice (DOJ), which has recently concluded a major case against the tech giant, a case that began over two years ago involving the federal government and eight states. This development is a significant blow to the company, which has expanded its business into various sectors including hardware and cloud services.
At the heart of Google’s operations lies its advertising business, which is arguably the most crucial aspect of its overall revenue generation. The success of ads not only sustains many web services but also allows Google to offer its primary search engine and other popular services, like Gmail and YouTube, for free.
However, the DOJ’s determination that Google is operating as an illegal monopoly marks a pivotal moment for the company. This is the second such finding from the DOJ in just two years, raising serious concerns about the future of its business model.
If the DOJ decides to impose severe penalties, the ramifications could be far-reaching. Historically, companies found guilty of monopolistic practices have faced significant consequences, including breakups and enforced divestitures of parts of their business.
Moreover, Google is not just facing challenges from the U.S. In the European Union, the company has been under similar scrutiny for advertising and monopoly-related violations for over a decade.
There are speculations that the U.S. federal government might compel Google to exit the advertising and browser markets by 2025, a scenario that would significantly impact its operations. While Google possesses diverse assets that might help it adapt, the potential for complete divestment is just one of many possible outcomes.
As the situation progresses, it will take several months before a definitive resolution emerges for either case, during which Google is expected to explore all possible legal avenues to minimize the fallout.