Nandini Roy Choudhury, writer
Brief news
- The Department of Justice is demanding Google sell its Chrome browser to address its monopoly in the search market, aiming to level the playing field for competitors.
- Proposed remedies include barring exclusive partnerships and requiring monthly reports on search ad auctions.
- Google plans to appeal the ruling, potentially delaying decisions on remedies, while experts suggest the court may enforce changes to exclusive arrangements.
Detailed news
As a result of a decision that was made in August stating that Google has a monopoly in the search market, the Department of Justice is requesting that the corporation sell its Chrome browser.
Chrome was first introduced by Google in 2008, and it is responsible for providing the search giant with data that it then uses to target advertisements. In a filing that was submitted on Wednesday, the Department of Justice stated that if the firm were to be forced to discontinue Chrome, it would make the playing field more level for search competitors.
“In order to rectify these harms, the [Initial Proposed Final Judgment] requires Google to divest Chrome. This will permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that functions as a gateway to the internet for many users,” the filing, which is 23 pages long, states.
A further recommendation made by the Department of Justice was that Google should be barred from engaging into exclusive partnerships with third companies such as Apple and Samsung. A further recommendation made by the department was that Google should be prevented from giving preference to its search function within its other products.
Additionally, the Department of Justice stated that the remedies should prohibit Google from eliminating “emerging competitive threats through acquisitions, minority investments, or partnerships if they are implemented.” That the “proposed remedies run for a period of ten years” was stated by the Department of Justice. A monthly report that details any changes made to the search text advertisements auction should be provided to a technical committee, according to the application, which also states that the search company should be forced to give monthly reports.
According to what is written in the complaint, “the proposed remedies are designed to end Google’s unlawful practices and open up the market for rivals and new entrants to emerge.”
A total of $49.4 billion in revenue was generated by search advertising during the third quarter of Alphabet, the parent company of Google. This figure represents three-quarters of the total ad sales during that time period.
The request made by the Department of Justice is the most serious attempt that the agency has made to dismantle a technology corporation since the antitrust case that it prosecuted against Microsoft, which was resolved in 2001.
In addition to its demand that Google sell Chrome, the Department of Justice (DOJ) stated that compelling the search engine to sell its Android mobile operating system would also help restore competition. However, the DOJ acknowledged that such a sale could potentially elicit significant objections from Google or other market participants.
Instead, the Department of Justice (DOJ) proposed that the other remedies should be sufficient to “blunt Google’s ability to use its control of the Android ecosystem to favor its general search services.” Furthermore, the DOJ suggested that if these remedies “ultimately fail to achieve the high standards for meaningful relief in these critical markets,” the Court may require a return to the Android divestiture suggestion.
As of the month of August, a federal judge has determined that Google has a monopoly in the market for search engines. Following the filing of the landmark case by the government in the year 2020, which asserted that Google dominated the general search industry by establishing stringent hurdles to entry and a feedback loop that maintained its dominance, the verdict was issued. A violation of Section 2 of the Sherman Act, which prohibits monopolies, was determined to have been committed by Google by the court.
Last month, the Department of Justice (DOJ) made it clear that it was contemplating the possibility of Google’s companies being split up, which could include the company’s Chrome, Play, or Android divisions.
In addition, the Department of Justice proposed restricting or outright outlawing default agreements and “other revenue-sharing arrangements related to search and search-related products.” This would include Google’s search partnerships with Apple on the iPhone and Samsung on its mobile devices, which are relationships that cost the corporation billions of dollars annually in payouts over the course of the year.
In response to the monopoly finding, Google has stated that it will file an appeal, which would delay any decisions regarding final remedies.
However, according to the opinions of a number of legal experts, the most likely consequence is that the court would request that Google terminate certain exclusive arrangements, such as the one it has with Apple. Although it is highly improbable that the couple will end their relationship, the experts believe that the court may request that Google make it simpler for consumers to access other search engines.
Source : CNBC news
