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Google to sell Chrome
Context:
On November 20, the United States Department of Justice (DoJ) and several states proposed measures to address “Google’s unlawful monopolisation,” including a recommendation for the tech giant to sell its Chrome web browser.
More on News:
- This follows an August ruling by Judge Amit Mehta of the US District Court for the District of Columbia, which declared Google a monopolist and directed actions to remedy its anti-competitive practices.
Background:
- In recent years, U.S. government agencies have brought antitrust cases against major tech companies, including Amazon, Meta, and Google, alleging monopolistic practices that stifle competition.
- In 2020, the DoJ and several states sued Google for using its dominance to maintain its monopoly, partly through agreements with companies like Apple and Samsung, paying billions annually to ensure Google remains the default search engine on smartphones and web browsers.
- Judge Mehta’s August ruling found Google guilty of monopolistic practices, setting the stage for corrective measures, including potential restructuring of its business units.
- He directed the DoJ and states involved in the case—such as California, Colorado, New Jersey, and New York—to propose solutions to address Google’s search monopoly.
Proposed Remedies:
- The DoJ and state governments outlined several actions in their proposal, arguing that Google’s behaviour had deprived competitors of crucial distribution channels and partners, thereby hampering competition and innovation.
- Their recommendations aim to create an open and competitive search ecosystem by:
- Divesting from Chrome and Android: Requiring Google to sell its Chrome browser to reduce its control over search distribution channels.
- Propose that Google divest from Android to prevent leveraging the mobile operating system and exclude rival search providers. Many smartphones currently have Google Chrome set as the default browser.
- Restricting Exclusive Agreements: Banning exclusive agreements with content publishers and acquisitions of competitors or potential competitors in the search domain without prior approval.
- Prohibiting Ownership of Search-Related Technologies: Proposing that Google be barred from owning or acquiring interests in web browsers, search engines, rival AI products, or search-related ad technology.
- Data Sharing with Competitors: Requiring Google to share user-side and ad data with competitors for 10 years, at no cost, while ensuring privacy safeguards.
- Divesting from Chrome and Android: Requiring Google to sell its Chrome browser to reduce its control over search distribution channels.
Google’s Response:
- Kent Walker, Chief Legal Officer of Google’s parent company Alphabet, criticised the proposal as “staggering” and indicative of “unprecedented government overreach.”
- He argued it would harm consumers, developers, and small businesses, while undermining America’s global technological leadership.
- Walker warned the measures could disrupt popular Google services beyond Search and hinder investments in artificial intelligence, a field where Google is a leading innovator.
Next Steps:
- Judge Mehta has scheduled a trial on the proposed remedies for April.
- However, with a new administration under President-elect Donald Trump poised to take office, it remains uncertain how the incoming government will approach the issue.
- An Associated Press report noted that if the court adopts the recommendations, Google could be compelled to sell its Chrome browser within six months of a final ruling.
- However, the company is likely to appeal any such decision, prolonging the legal battle that has already spanned over four years. Additionally, the measures would prohibit Google from favouring its own services, such as YouTube, in search results.
