The U.S. Department of Justice submitted a document formally requesting Google to divest its Chrome browser
The U.S. Department of Justice has demanded that Google divest its Chrome browser to address its monopoly ruling in the search market. This request aims to create a fairer competitive environment and prevent Google from eliminating competitive threats through acquisitions or partnerships. The U.S. Department of Justice also prohibits Google from entering into exclusive agreements with third parties and requires it to report changes in search ad auctions to the technology committee on a monthly basis. This is the most aggressive attempt to break up a tech company since the antitrust lawsuit against Microsoft in 2001
According to the Zhitong Finance APP, the U.S. Department of Justice has requested that Google (GOOGL.US) divest its Chrome browser, following a ruling in August this year that the company monopolized the search market.
Launched by Google in 2008, the Chrome browser provides the search giant with data for targeted advertising. In a document released on Wednesday, the U.S. Department of Justice stated that forcing the company to give up the Chrome browser would create a fairer competitive environment for search competitors.
The 23-page document stated, "To remedy these harms, the (proposed final judgment) requires Google to divest the Chrome browser, which will permanently prevent Google from controlling this critical search access point and allow competing search engines access to the browser, which is a gateway to the internet for many users."
Additionally, the U.S. Department of Justice stated that Google must not enter into exclusive agreements with third parties such as Apple (AAPL.US) and Samsung (SSNLF.US). The Department also indicated that Google is prohibited from prioritizing its search services in its other products.
The U.S. Department of Justice further stated that the remedies should prevent Google from "eliminating emerging competitive threats through acquisitions, minority investments, or partnerships." The Department noted that "the proposed remedies will be effective for 10 years." The document also stated that Google should be required to submit a monthly report to a technology committee outlining any changes to its search text ad auctions.
The document stated, "The proposed remedies aim to end Google's illegal conduct and open the market for competitors and new entrants."
It is reported that Google's search advertising revenue in the third quarter was $49.4 billion, accounting for three-quarters of total advertising sales during the same period.
The Department of Justice's request represents the most aggressive attempt by the agency to break up a tech company since it filed an antitrust lawsuit against Microsoft (MSFT.US) in 2001.
In addition to requiring Google to divest the Chrome browser, the U.S. Department of Justice stated that forcing the search company to divest its Android operating system would also help restore competition, "but the plaintiffs recognize that such a divestiture may provoke strong opposition from Google or other market participants."
Instead, the U.S. Department of Justice suggested that other remedies should be sufficient to "weaken Google's ability to leverage its control over the Android ecosystem to support its general search services," and if they "ultimately fail to achieve meaningful remedies at these high standards in these key markets, the court may require the restoration" of the proposed Android divestiture.
In August, a federal judge ruled that Google holds a monopoly in the search market. This ruling came after the government filed a landmark case in 2020, accusing Google of controlling the entire search market by setting up strong barriers to entry and maintaining a feedback loop that sustains its dominance. The court found that Google violated Section 2 of the Sherman Act, which prohibits monopolization.
Last month, the U.S. Department of Justice stated that it is considering breaking up Google's business, including potentially splitting its Chrome, Play, or Android divisions.
Additionally, the U.S. Department of Justice suggested limiting or prohibiting non-compete agreements and "other revenue-sharing arrangements related to search and search-related products." This would include Google's search agreements with Apple on the iPhone and with Samsung on its mobile devices, which cost the company billions of dollars annually Google has stated that it will appeal the antitrust ruling, which will lead to any final remedial decision.
However, according to some legal experts, the most likely outcome is that the court will require Google to cancel certain exclusive agreements, such as the company's deal with Apple. Experts say that while a breakup is unlikely, the court may require Google to make it easier for users to access other search engines