Tuesday, December 3, 2024

Google May Be Forced To Sell Its Chrome Browser. Here’s Why

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Washington DC:

Alphabet Inc.’s Google might have to sell Chrome, the world’s most widely used browser. The US Department of Justice (DoJ) reportedly wants the court to order Alphabet Inc. to sell off the browser to dismantle the monopoly Google has over the internet search market and related advertising. Google, meanwhile, said that if it is forced to sell Chrome, the move would harm its consumers and businesses. 

Last month, the Department of Justice filed papers in the court saying it was considering enforcing “structural remedies” to prevent Google from using some of its products. On Wednesday, the antitrust enforcers will propose the measure to a judge, according to a report by Bloomberg. 

Chrome holds almost 90 per cent share of the global search engine market as of October, according to StatCounter. Moreover, it controls about 61 per cent of the US market.

Case Against Google’s Monopoly

The DoJ brought the case against Google during US president-elect Donald Trump’s first four-year term. In a landmark ruling in August, Judge Amit Mehta ruled that Google operates an online search monopoly and has been considering what remedies or penalties to impose.

Since then, prosecutors have suggested several potential ways forward in the case, including ending billions of dollars with exclusive agreements that Google has with Apple and other companies to remain the default search engine on their tablets and smartphones, and divesting parts of its business, such as its Android operating system.

On Wednesday, the DoJ is likely to go ahead with several of those proposals, including one that requires Google to divest its Chrome browser. The antitrust officials, along with states that have joined the case, are also planning to recommend that federal judge Amit Mehta impose data licensing requirements on Google, the Bloomberg reported quoting sources. 

Should a sale proceed, Chrome would be worth “at least USD 15 – USD 20 billion, given it has over 3 billion monthly active users,” according to Bloomberg Intelligence analyst Mandeep Singh. 

Google’s Response

Google has called the proposal ‘radical’ and said it would harm its consumers and businesses in the US and also shake American competitiveness in artificial intelligence.

Previously, the company has denied operating a monopoly in the online search market. Responding to the DoJ’s filing in October, Google has said that “splitting off” parts of its business like Chrome or Android would “break them”.

“Breaking them off would change their business models, raise the cost of devices, and undermine Android and Google Play in their robust competition with Apple’s iPhone and App Store,” BBC quoted the company as saying. 

Now, Google is reportedly planning an appeal after US District Judge Amit Mehta makes his final ruling by August 2025. The company will have a chance to make its proposal in December.
 





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