Currently, a federal court is considering remedies following a decision in the Department of Justice’s (DOJ) case against Google. Last year, the DOJ filed its proposed remedies to the case. Concerningly, the government’s proposal includes several draconian measures that would undermine a competitive digital marketplace, stifle investments in innovation, and harm consumers.
Right now, policymakers and private businesses are racing to develop innovative new products and services that will shape the next century. Artificial intelligence (AI) tools are poised to be at the forefront of this race. Companies like Google are primarily responsible for investing in AI research, and more than 75% of all U.S. R&D is funded by private businesses. However, remedy proposed by the DOJ in the Google Search case threaten to undermine these investments. Among other things, the DOJ has proposed measures that would force Google to spin off some of its products into separate entities, and bar the company from making future investments in AI. If endorsed by the court, these types of heavy-handed proposals would send exactly the signal to would-be innovators and set the dangerous precedent that building a successful product would invite overregulation. At a time when China and other foreign rivals are moving ever faster in their tech development, U.S. regulators should not be undermining our country’s ability to win in this global competition.
These same proposals also pose a significant threat to American consumers. Take, for example, the DOJ’s recommendation to separate Google products into different business units. The current integration of products like Android and Google allows consumers to quickly and easily download privacy and security updates that protect users from cyber threats and data breaches. Fragmenting these services could weaken these protections, leaving Americans more exposed to online threats. Other recommendations from the DOJ, like preventing Google from fairly competing with other companies to be a web browser’s default search engine, would almost certainly raise prices for consumers. Device manufacturers, for example, have warned that a government mandate blocking a competitive bidding process for search engine contracts could force them to increase the cost they charge Americans for phones and tablets.
These heavy-handed remedies ultimately put U.S. innovation and American consumers at risk. The fact remains that American companies like Google are responsible for powering U.S. innovation and provide consumers with the products and services they love and rely on. Any remedy to the Google Search case must be carefully crafted with a focus on consumer welfare and the future of U.S. competitiveness on the world stage in mind.
