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November 21, 2024 10:23 am

November 21, 2024 10:23 am

Home Business Google Rejects Proposal to Sell Chrome Amid Ongoing Antitrust Scrutiny

Google Rejects Proposal to Sell Chrome Amid Ongoing Antitrust Scrutiny

by Silke Mayr

Google has strongly rejected reports suggesting that the U.S. government may force the company to sell Chrome, the world’s most popular web browser, in order to address antitrust concerns.

According to a Bloomberg report, the U.S. Department of Justice (DOJ) is expected to present this proposal to a judge on Wednesday, following a ruling in August by Judge Amit Mehta, who found that Google holds a monopoly in online search. The DOJ is now considering potential remedies and penalties to address this dominance.

While the DOJ has not publicly commented on the latest report, Google has made it clear that it opposes the measure. In a statement, Google executive Lee-Anne Mulholland called the proposal “radical” and argued that it would harm consumers, businesses, and U.S. tech leadership.

“The DOJ is pushing an extreme agenda that goes well beyond the legal issues at hand,” Mulholland said. “Forcing the sale of Chrome would negatively impact consumers, developers, and American innovation at a time when technological leadership is more important than ever.”

The DOJ is also reportedly considering new regulations on Google’s artificial intelligence (AI) systems, Android operating system, and its data collection practices.

Chrome’s Market Dominance and Google’s Power in Search

Chrome remains the most widely used web browser globally, with a 64.61% market share as of October, according to Similarweb. Additionally, Google’s search engine dominates with nearly 90% of the global search engine market, according to Statcounter.

As the default search engine in Chrome—and in many other major browsers like Safari on iPhones—Google’s control over online search is significant. Judge Mehta described the default search engine position as “extremely valuable real estate” for Google in his August ruling.

“Even if a competitor were to offer a superior product, they would only be able to compete if they were willing to pay billions of dollars in revenue share to secure the default search position,” Judge Mehta wrote.

Potential Breakup and Google’s Response

The DOJ is expected to present its final proposals to the court on Wednesday. According to an October filing, the DOJ had considered breaking up Google or imposing restrictions on how the company uses products like Chrome, Android, and Google Play to promote its search engine and related services.

In response, Google has rejected claims that it operates a monopoly. The company argues that separating Chrome or Android from its broader ecosystem would disrupt these services and harm consumers.

“Splitting off Chrome or Android would fundamentally change their business models, increase the cost of devices, and undermine their ability to compete with Apple’s iPhone and App Store,” Google said. The company also raised concerns that such a move would make it harder to secure Chrome and maintain its quality.

Google’s Financials and Investor Watch

Despite the ongoing antitrust scrutiny, Google’s financial performance remains strong. The company reported a 10% year-over-year increase in revenue from its search and advertising businesses, totaling $65.9 billion, in its most recent quarterly results. CEO Sundar Pichai highlighted the widespread adoption of Google’s AI-powered search tools, which are now used by millions.

With the DOJ’s proposed remedies potentially leading to significant changes, investors are closely monitoring Google’s stock price, which has fluctuated in recent days due to the ongoing legal challenges and speculation about the government’s next steps.

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