Google Denounces DOJ’s Proposal
Google firmly opposes reports that the U.S. government may force it to sell Chrome. The Department of Justice (DOJ) is reportedly planning to present this proposal to a judge on Wednesday. This follows Judge Amit Mehta’s August ruling that Google holds a monopoly in online search. The DOJ is now exploring remedies to address Google’s dominance in search.
Google has strongly criticized the proposal, calling it “radical” and “harmful” to consumers and businesses. Lee-Anne Mulholland, a Google executive, stated that this approach would damage 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 has not commented on the report. However, reports suggest that the DOJ is also considering new regulations on Google’s AI systems, Android operating system, and data collection practices.
Chrome’s Market Influence and Google’s Power in Search
Chrome remains the world’s most popular web browser, holding a 64.61% market share as of October, according to Similarweb. Google’s search engine also controls nearly 90% of the global search market, according to Statcounter. As Chrome’s default search engine, Google’s search engine enjoys a prime position in online search.
Judge Mehta’s August ruling described Google’s search engine position as “extremely valuable real estate.” He noted that competitors offering superior products would struggle to compete unless they paid billions for default search positions. “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,” Mehta wrote.
Breakup Proposal and Google’s Rebuttal
The DOJ’s final proposals are expected on Wednesday, following an October filing that suggested a possible breakup of Google. The DOJ is also considering restrictions on how Google uses Chrome, Android, and Google Play to promote its search engine and related services.
Google rejects claims that it operates a monopoly and argues that splitting off Chrome or Android would harm consumers. The company stated that such a move would disrupt these services and increase costs for 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 claimed that a forced separation would make it harder to secure Chrome and maintain its quality.
Google’s Financial Strength Amid Antitrust Scrutiny
Despite the antitrust challenges, Google’s financial performance remains robust. The company’s most recent quarterly results showed a 10% year-over-year revenue increase from its search and advertising businesses, totaling $65.9 billion. CEO Sundar Pichai highlighted the growing adoption of Google’s AI-powered search tools, which millions of users now rely on.
Investors are closely monitoring the impact of the DOJ’s proposals on Google’s stock price. Market speculation and the possibility of a government-imposed breakup have contributed to recent fluctuations in Google’s share value. Observers remain watchful for further developments as the DOJ’s next steps become clearer.