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科技巨无霸谷歌(GOOGL.US)面临“分拆时刻”! 它能像微软20年前那样金蝉脱壳吗?

Tech giant Google (GOOGL.US) is facing a "splitting moment"! Can it break free like Microsoft did 20 years ago?

Zhitong Finance ·  Oct 9 02:57

US antitrust officials are also considering having Google share search data; the Department of Justice proposed a variety of options in this historic case.

The Zhitong Finance App learned that the US Department of Justice told a federal judge that they are considering recommending that the tech giant Google (GOOGL.US) forcibly sell part of its business to mitigate the monopoly damage caused by its monopoly on the online search market. If Google were actually split, this would also be a historic antitrust split. In addition to the spin-off, the US Department of Justice also recommended that Google provide more exclusive data transparency, allow competitors and new entrants to access and use search engine data, and reduce Google's advantage of using its platforms (such as Chrome, Play, and Android) to enhance its own search business.

In a court filing on Tuesday, US antitrust law enforcement officials said that Judge Amit Mehta (Amit Mehta) could also order Alphabet Inc.'s Google to provide access to its exclusive underlying data for constructing search results and artificial intelligence products, that is, US antitrust officials are considering remedies for Google to share its exclusive search engine data and related access rights.

The US Department of Justice said in the document that the agency is considering behavioral and structural remedies to prevent Google from using flagship products such as Chrome, Play, and Android on Google search engines and new Google Search-related products and features — including emerging search access points and some new features, such as artificial intelligence, superior to competitors or new entrants.”

This 32-page court document provides a framework for the judge to consider various potential options as the Google antitrust case enters the “redress phase.” The agency said it will provide a more comprehensive remedy next month. Nasdaq 100 futures fell by about 0.3% after the filing of this document. Google, a subsidiary of Alphabet, is one of the largest constituent stocks in the index and is on par with Microsoft and Apple.

Since Washington unsuccessfully tried to split Microsoft (MSFT.US) 20 years ago, this is the most important step to control the illegal monopoly of a major US technology company. This shows that Google may face a long-term legal battle similar to Microsoft at the time. The possibility of a spin-off will continue, and Google will need to go through a lengthy legal process to avoid a spin-off.

Antitrust enforcers say Google has reaped profits related to scale and data by signing illegal distribution agreements with other technology companies to make its search engine the default option for smartphones and web browsers. Google's Android business (Android) includes operating systems used on smartphones and other consumer electronic terminal devices and apps.

The US Department of Justice also said that it may ask Google to allow websites more ability to opt out of its artificial intelligence products. The agency said it is considering proposals relating to Google's dominant position in search text ads, such as requiring the company to provide advertisers with more disclosure information and control where ads are placed.

Through illegal distribution agreements with other technology companies, Google has used its scale and data advantages to consolidate its monopoly position in the online search engine market. Therefore, the US Department of Justice believes that in order to eliminate Google's unfair competitive advantage in the market, it may be necessary to take some remedial measures, including splitting off part of its suspected monopoly business. In addition, in addition to the spin-off, the US Department of Justice is also considering other antitrust remedies, such as restricting Google's use of its products (such as Chrome, Play, and Android) to improve its search and search-related products, and providing more advertising control and transparency of exclusive data information.

The agency may also request restrictions on Google's investment in searching for competitors or potential competitors.

In terms of Google's latest developments, the giant's spokesperson criticized the Justice Department's document for being too “aggressive,” saying it “will have unexpectedly serious consequences for consumers, businesses, and the competitiveness of the United States.”

“We believe that today's antitrust blueprint goes far beyond the legal scope of court rulings on search distribution contracts,” Lee Anne Mulholland, Google's vice president of regulatory affairs, wrote in a blog post.

Numerous antitrust cases against Google are creating strong antitrust pressure. Mehta ruled this summer that Google's online search and search text ad market violated antitrust laws. He plans to trial the proposed remedies next spring and issue a formal decision before August 2025. Google has indicated that it plans to appeal Mehta's antitrust resolution, but it will have to wait until he has finalized measures of a remedial nature before doing so.

“We believe Google is unlikely to be officially split up at this time, despite the ongoing anti-monopoly vortex.” Daniel Ives, managing director and senior equity analyst from Wade Bush Securities, said. “We think Google will fight this in court for years.”

Several US state governments have long sued Google for its monopoly in the online search field and said they may ask the tech giant to pay for a public education campaign on how to change search engines.

On Monday, another US federal judge ordered Google to open its app store over the next three years to resolve another antitrust case brought by Epic Games Inc. involving Google's dominant position in the distribution of Android smartphone apps. The company also plans to appeal the decision.

Last month, the US Department of Justice and Google went head-to-head in the third antitrust lawsuit, which focused on Google's dominance of technology used to buy and sell online ad placements on search engines. Closing arguments for the lawsuit are scheduled to be held at the end of November. Antitrust law enforcement officials said that if the court finds that Google has a monopoly on the online search engine advertising market, they plan to force Google to sell part of its advertising technology business.

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