Google Slides over 5%! Forced Divestiture of Android and Chrome
1min read The U.S. Department of Justice (DOJ) has urged a federal judge to order Google to divest its Chrome browser and potentially its Android mobile operating system. Google dropped more than 5% during trading hours.
This aggressive proposal aims to curb Google's dominance in the online search market. The DOJ asserts that such divestitures are essential to dismantle Google's grip on search distribution, restoring competition in the industry. In addition, prosecutors proposed new restrictions on Google's training of artificial intelligence models.
The judge will ultimately decide on the remedies to be imposed. If the DOJ's recommendations are upheld, it would mark a historic antitrust victory and set a precedent for future cases.
The playing field remains uneven due to Google's conduct, DOJ prosecutors argued. The remedy must eliminate these unfair advantages and prevent Google from perpetuating its anti-competitive practices. They highlighted Google's dominance in distributing search engines via its Chrome browser and Android system as a significant barrier to competition.
Proposed Remedies
The DOJ recommended that Google provide access to its search index at minimal cost to competitors and share user and advertising data with rivals for a decade under strict privacy protections. Additionally, Google would be required to stop paying companies like Apple billions of dollars to maintain its search engine as the default option on browsers—a practice at the heart of the DOJ's case.
In 2021 alone, Google's default search contracts totaled more than $26 billion, with approximately $20 billion paid to Apple. If the court rules in favor of the DOJ, Apple could lose a lucrative revenue stream, significantly impacting its profits.
Google's Defense
Google has strongly criticized the proposed measures, describing them as staggering and claiming they would disrupt multiple Google products beyond search while discouraging its AI investments. The company accused the DOJ of pursuing a radical interventionist agenda that would harm consumers and undermine the U.S.'s global tech leadership.
Google has vowed to appeal the liability decision and is likely to challenge any remedies ordered by the court, which could prolong the legal battle for years. Despite handling over 90% of global online search queries, Google insists that its success is the result of superior product quality rather than anti-competitive practices.
The stakes are high for both sides, as the case could redefine the boundaries of antitrust enforcement in the digital age.