Google Cloud Partners: ‘A Google Breakup Is Unlikely’ After Monopoly Ruling

Google Cloud partners discuss the impact of the landmark court ruling that found Google to be a monopoly in the online search market as well as potential penalties around AI and data sharing.

As the U.S. Department of Justice looks at ways to deal with Google after a landmark court ruling found the $85 billion tech giant had monopolized the online search market, Google partners aren’t convinced a major shakeup will occur anytime soon.

“We don’t see this ruling affecting our Google business anytime soon, if ever,” said one top executive from a national Google Cloud partner who declined to be named. “This is a big antitrust, monopoly case on a global scale where appeals will drag on into 2025. Any forced sell-off or like a major technological implementation change would be years away.”

The executive said besides Google possibly having to slightly tweak its AI innovation roadmap or Chrome browser, it’s business as usual for Google’s 100,000-strong partner community.

“We don’t foresee changes in our customers’ buying patterns,” said the executive whose company generates millions of dollars in monthly Google Cloud sales. “I’m not going to comment on whether Google is a monopoly or not. But in terms of just sales impact for big partners like us, I don’t see anything here. … We think a Google breakup is unlikely to happen.”

Potential Google Punishments; Google Says It Will Appeal

The DOJ is reportedly discussing potential punishments after U.S. Judge Amit Mehta ruled on Aug. 5 that Google had illegally monopolized the online search and search text ads markets. The Justice Department is currently consulting with companies affected by Google’s practices to gain input on potential remedies.

Potential remedies reportedly include a divestiture, or breakup, of Google from its Android operating system business, AdWords sales platform or its Chrome web browser.

Additionally, the DOJ could also force Google to ban large exclusive distribution agreements with other companies, make Google share data with rivals, or create mechanisms to keep the company from gaining an unfair advantage in AI.

Google said it intends to appeal the ruling. The company said its success is due to offering a superior product.

“[DOJ] recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” said Kent Walker, president of global affairs at Google, in a statement.

Google declined to comment further on the matter.

Google Could Be Forced To Share Data With Microsoft; Google’s AI Might Need Changing

The DOJ could mandate that Google share more data with competitors, including Microsoft Bing.

Google might be forced to make available its massive data to search engines like Bing or DuckDuckGo. Mehta in his ruling said Google’s contracts ensure not only that Chrome gets the most user data — approximately 16 times as much as its next closest competitor — but that data stream keeps rivals from improving their own search results.

Additionally, the DOJ could prevent Google from forcing businesses and websites to allow their content to be used for Google AI products in order to appear in search results.

Google is requiring websites to allow its AI products to leverage their content to appear in its search results. DOJ attorneys have raised issues that Google’s search dominance gives it a big advantage when developing AI, according to Bloomberg.

Google Will Remain ‘Data Champions’

“Look, Google changes its search engine all the time to improve itself. There are good arguments Google can make during its appeal that can make another court overturn this entire decision,” said one CEO from a U.S.-based Google partner.

“If you break up Google’s search technology or make them change their AI website rules, it will still be challenging for others like an Apple or Microsoft to get up to the same speed as Google,” said the CEO. “So this would mean degrading the quality of search for years. There’s too many good arguments I think Google has here.”

The CEO said Google Cloud will likely be able to pivot out of “any sticky situation” regarding its AI products.

“They can make changes fast to their AI. I’m talking about in a matter of weeks, not months. They will find ways to compensate for any lost sales or customer confusion,” he said. “They will remain the data champions of the world, regardless of what happens.”

Google Android OS, Chrome And Ads Repercussions

Other major areas the DOJ is looking at is forcing Google to divest or sell off Google Ads, former known as AdWords, which is the platform the company uses for selling text advertising.

Judge Mehta’s ruling found Google monopolized advertisements that appear at the top of search results pages to draw users to certain websites, known as search text ads, which are sold via Google Ads. If the DOJ doesn’t force the sell-off of AdWords, it might ask for interoperability measures to make it work with other search engines.

Google’s Chrome web browser could be a possibility for divestment as Chrome is at the center of the ruling.

Finally, Google’s Android’s operating system powers around 2.5 billion devices on a global basis.

Judge Mehta found Google requires device makers to sign deals in order to gain access to its applications such as Gmail and Google Play Store. Google reportedly paid upwards of $26 billion to companies to make its search engine the default for third-party browsers and devices, with most of the money going to Apple.

Google Already Found Liable, But No Punishment Yet

In December, a California jury found Google “liable for multiple antitrust violations” related to the Google App Store, which monopolized the Android app distribution.

“The jury found that Google willfully acquired or maintained durable monopolies in the markets for Android App Distribution and Android In-App Payment Solutions for digital goods and services transactions,” said the U.S. Federal Trade Commission in a filing this week. “The jury also found that Google entered into a variety of agreements that unreasonably restrained trade in those markets.”

The judge in the case has not decided yet what punishment or relief to give yet.

What’s Next In The Google Case

Judge Mehta has ordered antitrust regulators and Google to begin plans for a second phase of the case which could include the government proposing a possible breakup of the tech giant in order to restore fair competition.

Google partners said they are unconcerned about the ruling and that any potential fallout will impact Google Cloud.

“Google can pivot. Whatever happens, Google has the ability to pivot and move its cloud and AI technology quickly,” said the CEO from the U.S.-based Google partner. “I’m hopeful that Google will remain intact.”