Trust in Antitrust: How the DOJ's Case Against Big Tech Could Reshape the Industry

Ojasvi Rana | USA Fellow

Lina M. Khan, Chair - Federal Trade Commission. Image sourced from Brookings Institution via Flickr.

In August 2024, the United States (US) Department of Justice (DOJ) achieved a historic win against Google, signalling a shift in regulatory momentum against Big Tech. This landmark antitrust case not only challenges Google's monopoly but represents a broader battle to dismantle tech giants' dominance, which many argue stifles innovation, limits consumer choice, and raises entry barriers for emerging competitors. The DOJ’s victory underscores a clear message: tech monopolies can no longer operate with impunity. This antitrust push has the potential to reshape the tech landscape, creating a more competitive environment that promotes technological advancement and protects consumers.

In its 277-page ruling, US District Judge Amit Mehta concluded that “Google is a monopolist, and it has acted as one to maintain its monopoly.” This case is the first major antitrust action against a tech giant since the 1990s Microsoft suit and reflects the DOJ's reinvigorated approach to regulating monopolistic power in the digital age. Attorney General Merrick Garland hailed the verdict as “a historic win for the American people,” emphasizing that “no company — no matter how large or influential — is above the law.” This ruling reinforces the DOJ’s determination to enforce antitrust laws and protect consumers, and it underscores that the sheer size and influence of a corporation should not – and will not – shield it from legal accountability.

Overall, the court has determined that:

1. Google operates as a monopoly in markets for general search services and general search text ads.

2. Google holds substantial market power within these markets.

3. Its distribution agreements with companies like Apple and Samsung are exclusive and create anticompetitive barriers.

4. Google has not presented valid procompetitive justifications for these agreements.

The DOJ's case against Google challenges its control over 90 per cent of the internet search market, maintained through exclusive agreements that make it the default search engine with Apple, Samsung and Verizon. Specific penalties for Google will be determined by August 2025, which may include a forced sale of Google’s Android operating system or its Chrome browser; the most significant tech restructuring since AT&T’s breakup in the 1980s. Additionally, a separate DOJ case is investigating Google’s dominance in the USD?$300 billion digital advertising market, which could compel further divestitures if Google is found guilty. Together, these cases underscore the power of antitrust actions to dismantle monopolistic practices, potentially deterring other Big Tech firms from exerting undue market influence.

However, these developments are not isolated. The DOJ’s actions mark a reawakening of federal oversight over tech monopolies after years of limited intervention. In tandem, the Federal Trade Commission (FTC) is scrutinizing potential anticompetitive behaviour by companies such as Nvidia, Apple, Microsoft, and OpenAI. Across the Atlantic, the European Commission is similarly tightening regulations with its Digital Markets Act, designed to curb anticompetitive practices and level the playing field for smaller firms. The regulatory momentum on both sides of the Atlantic underscores a common goal: to rein in Big Tech’s power and foster a tech environment that serves the public good rather than corporate monopolies.

Despite these strides, questions remain about whether the lawsuits can genuinely mitigate the harm monopolies inflict on consumers. The EU’s Digital Markets Act, for example, remains largely untested, while in the US, court proceedings may take years, delaying meaningful change. However, the leadership of young, tech-savvy figures in these regulatory bodies provides a glimmer of hope. At just 32, Lina Khan made history as the youngest-ever chair of the FTC, bringing a bold, fresh perspective to antitrust enforcement. Known for her strong stance on tech monopolies, Khan is a formidable force despite the significant resource imbalance between government agencies and Big Tech, with companies outmanning regulators at a 10:1 lawyer ratio. Her appointment marks a generational shift within regulatory agencies, as officials with a deep understanding of technology’s complexities work to bridge the gap between Big Tech’s reach and the capacity of regulatory bodies to rein them in.

The ongoing antitrust cases against Google and other Big Tech firms are more than just legal proceedings – they represent an attempt to redefine the tech industry’s future. If successful, these cases could lead to a profound restructuring of major firms, forcing them to relinquish market control and create space for smaller, innovative companies. Such a shift would not only foster competition but also democratize technological advancement, aligning the tech industry more closely with public interests.

These antitrust efforts signal a critical juncture for Big Tech, as regulatory bodies seek to restore balance in the digital economy. By enforcing antitrust laws, agencies like the DOJ and FTC are positioning themselves as guardians of a fair and open market. The road ahead will be challenging, as legal battles and corporate pushbacks are inevitable. However, the stakes are high, and the opportunity to foster a more competitive and equitable tech industry is within reach. The fight against Google is just the beginning. Regulators worldwide must actively work to protect consumer rights, encourage innovation, and dismantle the monopolistic empires that dominate our digital landscape.

Ojasvi Rana is the USA Fellow for Young Australians in International Affairs. pursuing double degrees in Biomedical Engineering Honours and Arts in Economics at the University of Sydney. In 2023, she completed an academic exchange semester at the University of Pennsylvania. Her recent internship at the United States Studies Centre as an Emerging Technology and Economic Security Intern deepened her strategic geopolitical thinking, a highlight included presenting her AI policy brief to USSC. Ojasvi will further her studies at Cornell University, spending the 2024-2025 academic year in Ithaca, New York.