U.S. Regulators Push for Google to Sell Chrome and Android Operations
October 9, 2024
In a significant move against Google, U.S. regulators are pushing for the tech giant to divest its Chrome browser and Android operating system amid allegations of monopolistic practices in online search. The initiative follows an August ruling in which a judge determined that Google, responsible for 90% of internet searches in the U.S., had established an unlawful dominance in the market.
The U.S. Justice Department is contemplating legal actions to terminate Google's financial arrangements that ensure its search engine is pre-installed or set as the default on new devices. In 2021 alone, Google paid approximately $26.3 billion to various manufacturers, including Apple, to maintain its stronghold on search engine market share.
The proposed remedies could fundamentally alter how Americans access information online, potentially reducing Google's revenues while providing greater opportunities for its competitors. The Justice Department asserts that meaningful solutions require not only dismantling Google's current distribution control but also preventing future monopolistic practices.
In addition to addressing distribution concerns, the Justice Department is also focusing on Google's expanding influence in the artificial intelligence (AI) sector. Prosecutors may seek to make Google's search data, indexes, and models available to competitors to ensure a level playing field.
Google plans to appeal the proposed changes, describing them as "radical" and asserting that they exceed the legal scope of the case. The company maintains that its search engine's success is due to its quality and the competition it faces from platforms like Amazon.
As the world’s fourth-largest company, with a market capitalization exceeding $2 trillion, Google is facing intensified legal scrutiny from various competitors and antitrust authorities. In a separate ruling, a U.S. judge mandated that Google must open its lucrative Play app store to greater competition, including allowing Android apps from rival sources. Furthermore, the Justice Department is also pursuing a case that could lead to the breakup of Google's web advertising business.
In a bid to curb Google's dominance in AI, the Justice Department may impose restrictions on agreements that limit competitors' access to web content and allow websites to opt out of Google using their content for AI training.
Google has voiced concerns that the proposed changes could stifle innovation in the AI sector, potentially skewing investment and hampering emerging business models.
The Justice Department is expected to submit a detailed proposal to the court by November 20, with Google allowed to propose its own solutions by December 20. This move marks a significant victory for antitrust enforcers, reflecting a broader crackdown on Big Tech firms like Meta, Amazon, and Apple.
Smaller competitors, such as Yelp and DuckDuckGo, have previously supported some of the Justice Department's proposals, advocating for a separation of Google’s Chrome browser and AI services from its core operations.
Meanwhile, in Europe, the likelihood of a breakup order from EU antitrust chief Margrethe Vestager seems low before her tenure ends next month, despite ongoing scrutiny of Google's advertising practices.
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