Google Faces Order To Divest Chrome

Uploaded on 2024-11-22 in FREE TO VIEW, BUSINESS-Services-Law

According to reports, the US Department of Justice (DOJ) will reportedly urge a judge to compel Google to sell its Chrome browser to end its market dominance in Internet search.

This move follows a ruling by Judge Amit Mehta ruled in August that Google operates an online search monopoly and he has been considering what penalties to impose, including an order to divest the business.

Chrome is the world’s most widely used browser, with web traffic tracker Similarweb placing its global market share at 64.6% in October. The US government’s lawyers have argued that its use in cross-promoting Google’s products is one of the things limiting available channels and incentives for competition to grow.

In response to the Mehta ruling, Google has said that an order to divest would harm consumers and businesses. Indeed, Google has made clear it is strongly opposed. "The DOJ continues to push a radical agenda that goes far beyond the legal issues in this case," said Google's Regulatory Affairs VP, Lee-Anne Mulholland. "The government putting its thumb on the scale in these ways would harm consumers, developers and American technological leadership at precisely the moment it is most needed,” Mulholland said in a statement.

In addition to its own branded service. Chrome delivers the underlying technology platform that powers the search engines on many smartphone browsers, including Apple's Safari.

In his ruling in August Judge Mehta that the default search engine was "extremely valuable real estate" for Google. "Even if a new entrant were positioned from a quality standpoint to bid for the default when an agreement expires, such a firm could compete only if it were prepared to pay partners upwards of billions of dollars in revenue share," he wrote.

The DOJ had been expected to provide its final proposed remedies to the court by Wednesday. It said in an October filing documenting initial proposals it would be considering seeking a break-up of Google. Mehta will consider other potential remedies that would prevent Google from using products such as Chrome in the Play app store.

Google will also reportedly be asked to establish new measures around its artificial intelligence, Android operating system and use of data.

Google has denied operating a monopoly in online search. In response to the DOJ's filing in October, Google has said "splitting off" parts of its business like Chrome or Android would "break them". "Breaking them off would change their business models, raise the cost of devices, and undermine Android and Google Play in their robust competition with Apple’s iPhone and App Store," the company said. It also said it would make it harder to keep Chrome secure.

Revenues from Google's search and advertising businesses rose by 10% to $65.9bn, according to the company's current results. Chief executive Sundar Pichai said the company's AI search tools for were now being accessed by millions of users.

Image: Planet Volumes

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