The U.S. Department of Justice (DoJ) is preparing to seek court intervention that could compel Google to divest its Chrome browser, in a bold effort to break up what regulators say is the company's overwhelming dominance in the internet search and digital advertising sectors. This action, reported by Bloomberg, is part of a broader strategy to curb Google's market power following a federal court ruling in August, which found that Google had violated antitrust laws by creating and maintaining a monopoly over online search.
The proposed measures extend beyond Chrome's divestiture. The DoJ, along with a coalition of states involved in the antitrust case, is expected to push for additional conditions concerning Google's artificial intelligence operations and its Android smartphone operating system. The regulators are also advocating for data licensing requirements, which could significantly restrict Google's use of user data to maintain its market grip.
Google, which dominates about 90% of the global search market, has indicated it will fight any proposed remedies. Lee-Anne Mulholland, Google's vice president of regulatory affairs, described the DoJ's actions as a "radical agenda" that stretches beyond the scope of the case. "The government putting its thumb on the scale in these ways would harm consumers, developers, and American technological leadership at precisely the moment it is most needed," Mulholland stated.
The stakes are high for Google as the potential remedies seek to dismantle key elements of its business model. Comparisons have been drawn to the U.S. government's attempt to break up Microsoft in the 1990s. Although a judge initially ruled to split Microsoft, the decision was overturned on appeal, and the case ultimately settled. Google's battle, however, reflects a modern digital landscape where search, data, and artificial intelligence are deeply intertwined.
Central to the DoJ's case is the argument that Chrome, as the most widely used browser, serves as a gateway through which Google channels users to its other products, ensuring continued dominance in the market. "Behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features" are among the options being considered, as highlighted in a recent court filing.
The August ruling by Judge Amit Mehta highlighted how Google's exclusive agreements, such as its multibillion-dollar deal with Apple to be the default search engine on iPhones, fortified its monopoly status and allowed it to raise advertising prices without fear of competition. Analysts at Jefferies have speculated that banning Google from making such payments could be another potential remedy on the table.
Despite these legal challenges, Google remains resolute. The company is expected to present its proposed solutions by December 20, setting the stage for further legal wrangling. The outcome of this case could reshape not only Google's operations but also set precedents for how tech giants are regulated across the industry.
The stakes are equally high for regulators tasked with ensuring effective competition while avoiding unintended consequences. Google's vast ecosystem-spanning internet search, mobile operating systems, digital advertising, and artificial intelligence-complicates efforts to implement remedies that do not disrupt the broader market.
This legal battle, initiated under the Trump administration and sustained under President Biden, reflects a bipartisan resolve to curtail Big Tech's power. Whether the push to force Google to divest parts of its business succeeds remains uncertain, but the implications for consumers, competitors, and the digital marketplace are significant.
