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Google Faces Potential Market Shake-Up as DOJ Pushes for Chrome Divestiture

Mover TrackerThursday, Nov 21, 2024 5:32 pm ET
1min read

Recently, the U.S. Justice Department has filed a request with the court to compel the divestiture of Google's Chrome browser, following a federal judge's decision that Google's search operations violate antitrust laws. Chrome, a critical asset in Google's portfolio, is not only a platform for internet browsing but also a key tool for serving ads. The browser defaults to Google's search engine, amassing user data vital for its advertising business.

If the Justice Department's request is granted, it could be a significant setback for Google. Since its release in 2008, Chrome has become the world's most popular browser, commanding a substantial share of the market. However, the potential for market share decline looms if the divestiture occurs.

Google has expressed staunch opposition to the Justice Department's proposal. Lee-Anne Mulholland, Google's Vice President of Government Affairs, stated that the department is pushing an "aggressive agenda" that extends beyond the legal scope of the case, posing potential harm to consumers, developers, and the U.S.'s technological leadership.

If forced to sever its Chrome business, Google's market dynamics could shift, offering competitors room to expand their market share. Additionally, this move might ripple across Google's core operations, subjecting them to stricter scrutiny and stiffer competition.

According to Google, if ordered to sell Chrome, other core functions like the Android operating system could face similar challenges. Nevertheless, the Justice Department appears to focus solely on Chrome at this juncture, with the decision set to be appealed by Google post the final verdict by Judge Amit Mehta, anticipated by August 2025.

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