The Department of Justice (DOJ) is intensifying its antitrust battle against Google, urging the tech giant to divest its Chrome browser.
This bold move follows an August ruling that affirmed Google’s monopoly in the search market, a landscape the DOJ aims to reshape.
Launched in 2008, Chrome has become a key data source for Google, fueling its targeted advertising machinery.
The DOJ argues that separating Chrome from Google would level the playing field, offering competitors a fairer chance in the search arena.
“To remedy these harms, the [Initial Proposed Final Judgment] requires Google to divest Chrome, which will permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet,” states the DOJ’s 23-page filing.
Beyond Chrome
The DOJ’s proposed remedies extend beyond Chrome, aiming to dismantle Google’s intricate web of influence.
The department advocates for preventing Google from forging exclusionary agreements with giants like Apple and Samsung.
Furthermore, it seeks to prohibit Google from prioritizing its own search service within its product ecosystem.
This multifaceted approach underscores the DOJ’s commitment to dismantling what it perceives as anti-competitive practices.
“The proposed remedies are designed to end Google’s unlawful practices and open up the market for rivals and new entrants to emerge,” the filing emphasizes.
The DOJ’s proposed remedies envision a decade of oversight, requiring Google to submit monthly reports to a technical committee detailing any changes to its search text ads auction.
This transparency measure aims to ensure ongoing compliance and prevent future manipulation of the search advertising landscape, a sector that generated a staggering $49.4 billion for Alphabet, Google’s parent company, in the third quarter, representing three-quarters of its total ad sales.
Echoes of Microsoft
This aggressive push by the DOJ marks its most significant attempt to dismantle a tech behemoth since its landmark case against Microsoft, which culminated in a 2001 settlement.
The DOJ’s pursuit of Google carries similar weight, signaling a potential turning point in the regulation of Big Tech.
Android divestiture: a looming possibility?
While Chrome divestiture is the primary focus, the DOJ also hinted at the possibility of Google divesting its Android mobile operating system.
Recognizing potential resistance, the department suggested alternative remedies to curb Google’s influence within the Android ecosystem.
However, the DOJ left the door open for revisiting Android divestiture if these measures prove insufficient. “…but Plaintiffs recognize that such divestiture may draw significant objections from Google or other market participants.”
The filing continues, stating that if the initial remedies “ultimately fail to achieve the high standards for meaningful relief in these critical markets, the Court could require return to” the Android divestiture suggestion.
Challenging Google’s stronghold
In addition to divestiture, the DOJ proposed limiting or prohibiting default agreements and revenue-sharing arrangements related to search and search-related products.
This includes Google’s lucrative search arrangements with Apple and Samsung, deals worth billions of dollars annually.
These agreements are seen as reinforcing Google’s dominance, and their potential curtailment could significantly impact the company’s bottom line.
Last month, the DOJ indicated it was considering a breakup of Google businesses, including potentially breaking up its Chrome, Play or Android divisions.
Additionally, the DOJ suggested limiting or prohibiting default agreements and “other revenue-sharing arrangements related to search and search-related products.”
That would include Google’s search arrangements with Apple on the iPhone and Samsung on its mobiles devices, deals that cost the company billions of dollars a year in payouts.
A protracted legal battle ahead
Google has vowed to appeal the monopoly ruling, potentially delaying any final remedy decisions.
Legal experts predict that the court may ultimately require Google to dissolve certain exclusive agreements, such as its deal with Apple.
While a full-scale breakup is deemed unlikely, the court could mandate easier access to alternative search engines, empowering users and fostering greater competition.
Google has said it will appeal the monopoly ruling, which would draw out any final remedy decisions.
However, the most likely outcome, according to some legal experts, is that the court will ask Google to do away with certain exclusive agreements, like its deal with Apple.
While a breakup is an unlikely outcome, the experts said, the court may ask Google to make it easier for users to access other search engines. In August, a federal judge ruled that Google holds a monopoly in the search market.
The ruling came after the government in 2020 filed its landmark case, alleging that Google controlled the general search market by creating strong barriers to entry and a feedback loop that sustained its dominance.
The court found that Google violated Section 2 of the Sherman Act, which outlaws monopolies.
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