U.S. Assistant Attorney General Jonathan Kanter speaks about the antitrust lawsuit against Live Nation Entertainment during a press conference as Attorney General Merrick Garland and Deputy Attorney General Lisa O. Monaco look on during a press conference at the Department of Justice in Washington, U.S., May 23, 2024. REUTERS/Ken Cedeno
Ken Cedeno | Reuters
The Department of Justice is calling for Google to divest its Chrome browser, following a ruling in August that the company holds a monopoly in the search market.
Chrome, which Google launched in 2008, provides the search giant with data it then uses for targeting ads. The DOJ said in a filing on Wednesday that forcing the company to get rid of Chrome would create a more equal playing field for search competitors.
“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,” the 23-page filing reads.
Search advertising accounted for $49.4 billion in revenue in parent company Alphabet’s third quarter, representing three-quarters of total ad sales in the period.
The DOJ’s request represents the agency’s most aggressive attempt to break up a tech company since its antitrust case against Microsoft, which reached a settlement in 2001.
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.
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.
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.
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