The U.S. Department of Justice has launched a bold offensive against tech giant Google, proposing sweeping measures that could reshape the digital landscape.
At a Glance
- DOJ proposes Google sell Chrome browser and cease default search payments
- Proposals follow ruling that Google maintained illegal search monopoly
- Google may be forced to sell Android or stop mandatory services on devices
- Measures could be enforced for up to a decade by court-appointed committee
- Google criticizes proposals as harmful government overreach
DOJ’s Unprecedented Move Against Google’s Dominance
In a landmark proposal, the U.S. Department of Justice (DOJ) has taken aim at Google’s alleged monopolistic practices in the technology sector. The DOJ, along with several states, has requested a federal court to mandate Google to sell its widely popular Chrome web browser and cease payments that secure its position as the default search engine on various platforms.
This move follows a ruling by Judge Amit P. Mehta that Google maintained an illegal monopoly in online search. The proposals represent the most significant action in a tech antitrust case since the Microsoft breakup request in 2000, highlighting the government’s renewed focus on regulating Big Tech.
Proposed Measures to Dismantle Google’s Market Control
The DOJ’s proposals are far-reaching and could fundamentally alter Google’s business model. In addition to selling Chrome, which currently holds a 67% share of the global browser market, the government has proposed that Google either sell its Android operating system or stop making its services mandatory on Android devices.
“Google’s unlawful behavior has deprived rivals not only of critical distribution channels but also distribution partners who could otherwise enable entry into these markets by competitors in new and innovative ways,” said a statement from the DOJ.
Furthermore, the DOJ seeks to prevent Google from entering paid agreements to be the default search engine on devices and browsers. This could significantly impact companies like Apple and Mozilla, which rely heavily on payments from Google for default search engine placement.
Potential Consequences for the Tech Industry
The implications of these proposals extend beyond Google. Mozilla, for instance, reported $510 million in royalties in 2022, a substantial portion of its revenue that could be affected. Apple stands to lose even more, with estimates suggesting a potential loss of $18 billion to $20 billion if Google is barred from making payments for default search engine status on Apple devices.
“We think this is a really big deal and will lower the barriers to competition,” said Kamyl Bazbaz, DuckDuckGo’s head of public affairs.
The DOJ’s proposal also includes requiring Google to provide access to user-side data to “Qualified Competitors” and allow them to use the data freely. This move could potentially level the playing field for smaller search engines and foster innovation in the sector.
Google’s Response and The Road Ahead
Google has vehemently opposed the proposed remedies, describing them as harmful government overreach that could jeopardize user security, privacy, and America’s global technology leadership. The company argues that the proposals would “deliberately hobble people’s ability to access Google Search” and potentially chill its investment in AI.
“DOJ’s approach would result in unprecedented government overreach that would harm American consumers, developers, and small businesses—and jeopardize America’s global economic and technological leadership at precisely the moment it’s needed most,” said Alphabet Chief Legal Officer Kent Walker.
The legal battle is far from over. Judge Amit Mehta is unlikely to rule on the proposal before late 2025, and any ruling is expected to be appealed by Google. This suggests that the final outcome of this landmark case may not be known for several years, leaving the tech industry in a state of uncertainty as it navigates potential shifts in the competitive landscape.
Sources:
- https://www.nytimes.com/2024/11/20/technology/google-search-chrome-doj.html
- https://www.reuters.com/technology/google-prosecutors-propose-cure-search-monopoly-2024-11-20/
- https://www.pbs.org/newshour/politics/doj-seeks-to-break-up-google-forcing-sale-of-web-browser-chrome-sale-as-monopoly-punishment
- https://www.breitbart.com/tech/2024/11/21/doj-proposes-google-divest-chrome-browser-eliminate-search-engine-payments/