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Monday, December 23, 2024

Google Rejects Potential Chrome Sale Amid U.S. Antitrust Concerns

Google has strongly opposed reports suggesting that the U.S. government may force the company to sell its web browser, Chrome, as part of efforts to resolve ongoing antitrust concerns. Chrome, the world’s most widely used browser, could face divestiture to address the Justice Department’s claims that Google holds a monopoly in online search.

According to a Bloomberg report, the U.S. Department of Justice (DOJ) plans to present this proposal to a judge on Wednesday. The move comes after a landmark ruling in August by Judge Amit Mehta, who determined that Google operates a monopoly in the online search market. The DOJ is now exploring possible remedies or penalties, including potential structural changes to Google’s business.

While the DOJ has not officially commented on the report, Google has vehemently opposed the proposal. In a statement, Lee-Anne Mulholland, a Google executive, criticized the DOJ’s position, calling it a “radical” move that goes beyond the scope of the legal issues at hand.

“The DOJ is pushing an extreme agenda that would harm consumers, developers, and American innovation,” Mulholland said. “Forcing the sale of Chrome would disrupt services that billions of people rely on every day and undermine the leadership of U.S. tech companies globally.”

In addition to the Chrome divestiture, the DOJ is reportedly considering other measures that could impact Google’s business, including new regulations around its use of artificial intelligence (AI), Android operating system, and data privacy practices.

Google’s Dominance in Web Browsing and Search

Chrome continues to dominate the web browser market, with a 64.61% share globally as of October, according to data from Similarweb. Google’s search engine, meanwhile, commands nearly 90% of the global search market, based on figures from Statcounter.

As the default search engine in Chrome—and also in browsers like Safari on iPhones—Google’s control over online search is central to its business model. Judge Mehta, in his August ruling, described the default search engine setting as “extremely valuable real estate” for Google.

“Even if a competitor offered a better-quality search engine, they would only be able to compete if they were prepared to pay billions of dollars in revenue-sharing arrangements to secure the default position,” Mehta wrote in his judgment.

The DOJ’s Proposed Remedies and Google’s Response

The DOJ is expected to submit its final proposed remedies to the court on Wednesday. In an October filing, the DOJ outlined potential actions, including breaking up Google’s business or imposing restrictions on how it uses products like Chrome, Android, and the Google Play Store to promote its search engine and related services.

Google has consistently denied that it operates a monopoly and argues that splitting off Chrome or Android would be detrimental to consumers. In response to the DOJ’s proposal, the company warned that such a move would disrupt both its business model and the broader ecosystem.

“Breaking off Chrome or Android would fundamentally alter their business models, increase the cost of devices, and hinder their ability to compete with Apple’s iPhone and App Store,” Google stated. The company also raised concerns that separating these products would compromise security and user experience.

Financial Performance Amid Legal Scrutiny

Despite the ongoing antitrust investigation, Google’s parent company, Alphabet, reported strong financial results. In its latest earnings report, Google’s search and advertising revenues increased by 10% to $65.9 billion. CEO Sundar Pichai also highlighted the growing adoption of Google’s AI-driven search tools, which are now used by millions of people worldwide.

Investors are keeping a close eye on Google’s stock performance, particularly in light of the DOJ’s proposed remedies. There is growing speculation about how the government’s actions might impact the company’s operations, as well as its stock value, as the legal battle continues to unfold.

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