Alphabet Inc., Google's parent company, is facing a historic antitrust challenge as the Department of Justice (DOJ) pushes for remedies that could significantly reshape the tech giant's business operations. Among the proposals are demands to sell Google's Chrome browser, end default search engine agreements, and open its search data to competitors. The DOJ's aggressive measures follow a September court ruling that found Google had illegally monopolized the search market. Alphabet's shares fell nearly 5% on Thursday, reflecting growing investor unease.
U.S. District Judge Amit Mehta's decision in September highlighted Google's use of billions of dollars in payments to ensure it remained the default search engine on devices and browsers. The DOJ now seeks to dismantle the mechanisms that have allowed Google to dominate digital search and advertising. Chief among the proposals is forcing Google to sell Chrome, a browser that commands roughly two-thirds of the global market, a move the DOJ says is critical to restoring competition.
Alphabet's Chief Legal Officer Kent Walker denounced the DOJ's remedies as "unprecedented government overreach." In a statement, Walker warned that these measures could harm consumers, weaken privacy protections, and stifle innovation. "The DOJ's approach would harm American consumers, developers, and small businesses while jeopardizing America's global economic and technological leadership," Walker said. He also cautioned that divesting Chrome could hinder Google's investments in artificial intelligence.
The Chrome browser has been integral to Google's ecosystem, providing the company with valuable user data that fuels its advertising revenue and powers AI advancements. Critics argue that separating Chrome from Google would diminish its strategic value. "The reason why Chrome is valuable to Google is because it enhances their ad and search business. Without those integrations, Chrome becomes just a data broker," said Megan Gray, a former general counsel at DuckDuckGo.
The DOJ's proposed remedies extend beyond Chrome. They include banning Google from paying device makers and browser developers to make Google Search the default engine. This would disrupt a partnership with Apple, where Google reportedly pays billions annually to maintain its status as the default search engine on iPhones. Analysts suggest Apple might still use Google Search, even without payments, due to its popularity among users.
Experts caution that a forced sale of Chrome and other remedies could face significant legal and logistical hurdles. Kevin Walkush of Jensen Investment Management called the proposals an "over-ask" and predicted a lengthy appeals process. "The wheels of justice do not turn quickly, and this case could take years to resolve," Walkush said, citing the failed DOJ attempt to break up Microsoft in the early 2000s.
Further complicating matters is the incoming Trump administration, which could influence the case's trajectory. While Trump's first administration initiated the antitrust case against Google, he has since expressed concerns about breaking up American tech giants, citing competition with China. "Trump's stance on the case remains unclear, but his pro-business approach could impact the DOJ's push for remedies," said legal analyst Gus Hurwitz.
Despite the legal challenges, the DOJ's demands have raised critical questions about the future of tech regulation. Evercore analysts described the proposed curbs on Google's practices as "draconian," while others argued that sharing search data with competitors could level the playing field. The Center for Journalism & Liberty noted that licensing Google's search data could transform industries such as news publishing, enabling organizations to better understand and engage their audiences.
