Google has strongly opposed a proposal by the U.S. Department of Justice (DOJ) that could force the company to sell its popular Chrome browser, warning it would harm both consumers and businesses. The DOJ is expected to present this proposal to a judge on Wednesday, according to Bloomberg.
This latest development follows a ruling in August by Judge Amit Mehta, who concluded that Google holds a monopoly in online search. Since then, the court has been considering what actions or penalties to impose. While the DOJ has not yet commented publicly on the matter, Google has made it clear that it opposes the measure.
“The DOJ continues to push a radical agenda that goes far beyond the legal issues in this case,” said Lee-Anne Mulholland, Google’s executive. The company has also expressed concerns that the proposal could extend beyond Chrome, with reports suggesting that Google could be asked to implement new measures around its artificial intelligence (AI), Android operating system, and data usage.
Google argues that the government’s intervention would have a detrimental effect on the technology sector. “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 added.
Dominance in Browsers and Search
Chrome remains the world’s most widely used web browser, with market tracker Similarweb estimating its global market share at 64.61% in October. In addition, Google Search commands nearly 90% of the global search engine market, according to Statcounter. Chrome’s prominence is also tied to its integration with Google Search, which is the default engine on Chrome and many smartphone browsers, including Safari on iPhones.
Judge Mehta had previously noted that Google’s position as the default search engine in Chrome is “extremely valuable real estate.” He observed that while new competitors could theoretically bid for this default position, they would need to invest billions of dollars to compete effectively.
Break-up Concerns
The DOJ had initially considered remedies that could involve breaking up Google’s business or forcing the company to separate key services like Chrome, Android, and its app store, Google Play. These actions are intended to prevent Google from using its products to promote its search engine and related services. In its filing, the DOJ hinted at the possibility of breaking up Google to reduce its competitive advantage in the market.
Google, however, has rejected the idea of splitting off parts of its business, arguing that it would disrupt its business models, increase the cost of devices, and undermine its ability to compete with Apple’s iPhone and App Store. The company also warned that breaking up Chrome and Android would make it more difficult to keep these services secure.
Impact on Google’s Financials
Despite these regulatory challenges, Google’s financial performance remains strong. In its most recent quarterly earnings report, the company announced a 10% increase in revenues, reaching $65.9 billion, driven by its search and advertising businesses. CEO Sundar Pichai also highlighted the growing use of Google’s AI-driven search tools, which are now accessed by millions of users worldwide.
Investors are closely watching Google’s stock performance as the DOJ’s proposed remedies move forward, with many speculating that these regulatory actions could impact the company’s future growth.
