Google has stated that forcing it to sell Chrome, the world’s leading web browser, would significantly harm consumers and businesses alike.
The US Department of Justice (DOJ) plans to propose this measure to a judge on Wednesday, as reported by Bloomberg.
Judge Amit Mehta previously ruled in August that Google maintains an online search monopoly and is now tasked with determining appropriate remedies and penalties.
While the DOJ has yet to comment on the report, Google has made its opposition clear. Google executive Lee-Anne Mulholland declared, “The DOJ continues to push a radical agenda that far exceeds the legal concerns in this case.”
Additionally, the DOJ is expected to push for new regulations regarding Google’s artificial intelligence, Android operating system, and data usage.
Ms. Mulholland asserted, “The government’s interference in these matters would disadvantage consumers, developers, and jeopardize American technological leadership at a critical time.”
Chrome commands an impressive 64.61% share of the global browser market, according to web traffic tracker Similarweb. Meanwhile, Google search dominates the search engine market with nearly 90% as of October, as reported by Statcounter. It is the default search engine not only in Chrome but also in numerous smartphone browsers, including Safari on iPhones.
Judge Mehta recognized in his August ruling that the default search engine position represents “extremely valuable real estate” for Google. He noted that for a new competitor to gain this position, it would require substantial financial resources, potentially in the billions, to pay partners once existing agreements expire.
The DOJ was expected to present its final proposed remedies to the court by Wednesday, and its earlier filings hinted at considering a break-up of Google. Proposed remedies could include measures to stop Google from leveraging products like Chrome, Play (its app store), and Android to favor Google search and related services.
“Splitting Off
Google has long maintained that it does not hold a monopoly in the realm of online search, a claim that has come under scrutiny, particularly in light of the U.S. Department of Justice’s (DOJ) recent actions. In October, the DOJ filed legal arguments suggesting the need for significant changes to how Google operates within the search and advertising sectors. In its defense, Google refuted the notion of dismantling its business, arguing that “splitting off” integral components such as Chrome or Android would have detrimental effects on those services.
The company warned that separating these services would fundamentally alter their business models, potentially leading to increased costs for consumers and manufacturers alike. Google emphasized that such changes could jeopardize the competitive dynamics between its Android operating system, Google Play Store, and Apple’s iPhone and App Store, which would ultimately harm consumer choice and innovation.
In addition, Google articulated concerns that creating a divide between its products could compromise the security of the Chrome browser. The company highlighted that maintaining a unified ecosystem is critical for ensuring consistent updates and security measures.
The implications of a ruling on Google’s alleged monopoly could be significant for users. In the most recent quarterly report, Google’s revenues from its search and advertising divisions grew by an impressive 10%, totaling $65.9 billion. This growth was bolstered by the widespread adoption of Google’s AI-powered search tools, which have reportedly been accessed by millions of users worldwide.
Given the ongoing developments and potential remedies proposed by the DOJ, investors have been closely monitoring Google’s share price fluctuations, particularly observable on Tuesdays, as the situation unfolds. The outcome could reshape the tech landscape and directly affect how consumers interact with Google’s various services in the future.