The US government is weighing whether to break up tech giants Google and Meta over antitrust concerns, a move that could be challenging given the complexity of the cases.
In recent years, federal trials have weighed breaking up giant technology companies, a tactic reminiscent of Standard Oil. A landmark case in the 1990s involving Microsoft resulted in an appeals court throwing out a breakup order due to its long-term efficacy being uncertain.
The Federal Trade Commission is currently arguing that Meta has maintained an illegal monopoly in social media through its acquisitions of Instagram and WhatsApp. The agency seeks to force Meta to divest both platforms. Meanwhile, the Justice Department is seeking a breakup of Google to remedy the company’s monopoly on internet search.
Experts say that while structural solutions like breakups can be effective, they also carry risks. A court’s remedy looks to the future, aiming to free up markets and create a competitive environment that fosters innovation and lower prices.
The challenge is particularly significant as regulators aim to rein in tech giants’ power over communications, commerce, and information. Other companies, such as Apple and Amazon, are also facing antitrust lawsuits.
History shows that breakups can be effective, but the results have been mixed. The Standard Oil case, which saw the company broken up into 34 entities, initially helped competition but led to new oil giants emerging.
In contrast, a court order to unbundled IBM’s hardware from software in 1969 created more competition and sparked the rise of commercial software industry, with Microsoft benefiting as a result. Experts say that remedies without breakups can also create competition, citing examples such as Google’s settlement with Microsoft in 2001.
The next powerful tech companies to face courtroom scrutiny are Meta and Google, which will present their cases in US courts. The outcome could have significant implications for the tech industry and consumers alike.
Source: https://www.nytimes.com/2025/04/15/technology/antitrust-structure-deals-challenge.html