US considers splitting Google: Android and Google Ads would be separate companies

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The US Department of Justice has shared that it is considering splitting Google into multiple companies , which could turn Android, the popular mobile operating system, and Google Ads, its advertising business, into two completely separate companies. This possible next move was raised in the wake of a recent ruling related to the antitrust case that was initiated in 2020 by the Department of Justice itself in which Google was accused of using its dominance in the search market, as reported in a Bloomberg report.

The judge in charge of the case determined that Google has taken advantage of its large market share to prevent the growth of competitors , even reaching multimillion-dollar agreements with companies such as Apple to keep its search engine as the default option on some of the most popular technological platforms.

While Google has announced its intention to appeal the ruling, the decision has given the Justice Department the impetus to consider options that were not in the cards until recently. This antitrust case is considered the most significant of the past two decades, comparable in magnitude to the 1998 case that forced Microsoft to unlink its Internet Explorer browser from its Windows operating system.

The possible separation of Google and Android
Among the moves being considered is the possibility of separating Chrome, Google’s web browser , from the rest of the company. Also being considered is the option of spinning off Android into a standalone company, which would be a big change given that Google acquired Android in 2005 and has developed it into the most widely used operating s australia whatsapp list ystem in the mobile phone market. Other scenarios being considered include the independence of Google Ads, the advertising division that generates the majority of Google’s revenue.

Likewise, the likelihood of a split is low, and even if it were to happen, Google could appeal the decision , potentially leading to years-long litigation. According to tech analyst Benedict Evans, “As separate companies, neither Android nor Chrome would have any revenue, unless, ironically, Google paid them to become the default search engine.”

The Justice Department has also considered less drastic options, such as banning Google from making deals to be the default search engine on various platforms, which would have a significant impact on companies like Apple, which rely on these deals for more than 10% of their revenue from services. Other measures that have been considered include forcing Google to share more data with competitors or limiting its role in the growing artificial intelligence market.

Although a final decision on what action will be taken has not yet been made, the tech giant and the Justice Department have until September 4 to reach an agreement. In the meantime, the news has already caused shares of Alphabet, Google's parent company, to fall by almost 3% on Wall Street.

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