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FTC intervenes in Google v. Epic Games case, suggests Google should be broken up


FTC intervenes in Google v. Epic Games case, suggests Google should be broken up

The U.S. Federal Trade Commission is reportedly considering breaking up Google LLC after intervening as amicus curiae in Epic Games Inc. v. Google, which concerned Google’s competition and payment practices in its Play Store.

The case involved Epic Games, best known as the company behind the hugely popular online game “Fortnite,” suing Google, alleging that the search engine giant has an illegal monopoly with its Play Store. Although Epic Games lost a similar case against Apple Inc., it won its case against Google in federal court in December.

Google appealed the lawsuit to the Supreme Court in December, and the FTC is now joining the case via an amicus curiae brief. Although some observers find the idea that the FTC could break up Google unlikely, a press release from the FTC itself suggests it could be a possibility.

In the FTC’s own words: “The FTC encourages the Court to use its broad authority to grant relief that ends the illegal conduct, prevents its recurrence, and restores competition.” The press release and the most important part of the motion to quash follow next: “Injunctions should also restore lost competition in a forward-looking manner and ensure that a monopolist does not continue to reap the benefits and advantages it gained from the antitrust violation.”

While it must be said that the FTC never directly calls for the breakup of Google, any layperson with knowledge of US antitrust law and the English language could well come to that conclusion. And that’s not all.

“Looking ahead in cases like Epic v. Google often requires considering network effects, data feedback loops, and other important features of digital markets,” the FTC writes. “This could help potential competitors overcome the advantages that established digital platforms often have, including network effects and data burden.”

But the real kicker comes at the end. “Google’s monopolistic conduct has caused significant harm to millions of users in the United States,” the FTC adds. “Allowing monopolists to reap the benefits of their illegal monopoly while avoiding the costs of restoring the competition they have unlawfully eliminated would undermine deterrence.”

It is entirely possible that the FTC’s negotiating tactics are a hint at a possible breakup of Google. Nevertheless, this hint should be taken seriously.

According to Bloomberg, less severe options than breaking up Google would include forcing Google to share more data with rivals and measures to prevent Google from gaining an unfair advantage in AI products. If a breakup were to happen, the first thing Google would be forced to do would be to divest both its Android operating system and its Chrome web browser.

Image: FTC

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