Big Tech is bracing for impact as the Department of Justice doubles down on demands for Google to sell its Chrome browser. The government’s latest antitrust proposals leave AI investments intact but take aim at the tech giant’s search dominance.
At a glance:
- DOJ wants Google to divest Chrome browser but backs off AI investment sell-off demands
- Google must stop paying partners for preferential search engine placement
- A U.S. district judge ruled Google maintains an illegal monopoly in search
- Google counters that divesting Chrome would harm consumers and national security
- Case marks the first major tech antitrust action since the 1990s
DOJ Targets Google’s Search Empire
The Department of Justice is pushing forward with proposals that would force Google to divest its Chrome browser as part of an antitrust remedy. This move comes after a federal judge ruled earlier this year that Google has maintained an illegal monopoly in search and search text ads.
The DOJ also wants to prohibit Google from paying partners like Apple for preferential treatment of its search engine, a practice that has helped cement its market dominance. These exclusive deals have been a key target of regulators who claim they stifle competition.
DOJ proposes remedies that could reshape @Google's business, including potentially forcing divestment of Chrome and Android. If finalized, the measures aim to increase competition in search and rein in data practices.#google #chrome #tech #USA https://t.co/d6NNPabfW6
— tech360tv (@tech360tv) October 10, 2024
The case, initiated in 2020, represents the most significant tech antitrust action since the Microsoft case in the 1990s. Government attorneys argue that Google’s contracts with device makers and browser partners effectively block smaller search rivals from gaining market share.
Google Fights Back Against “Radical” Proposals
Google has vigorously defended its position, arguing its market dominance stems from providing superior search technology that consumers freely choose. The tech giant claims users can easily change default search engines if they prefer alternatives.
Instead of divesting Chrome, Google has proposed its own remedies, including allowing multiple default search agreements and shortening contract terms with partners. These alternatives would preserve its business model while theoretically opening more opportunities for competitors.
DOJ proposes remedies that could reshape @Google's business, including potentially forcing divestment of Chrome and Android. If finalized, the measures aim to increase competition in search and rein in data practices.#google #chrome #tech #USA https://t.co/d6NNPabfW6
— tech360tv (@tech360tv) October 10, 2024
AI Investments Spared, For Now
In a surprising shift, the DOJ has backed away from earlier demands that Google sell off its artificial intelligence investments. This concession suggests the government recognizes the importance of allowing American companies to compete globally in the rapidly evolving AI space.
The case is expected to lead to a lengthy appeal process, with arguments scheduled for April. Whatever the outcome, the ruling will establish a precedent for how the government addresses alleged monopolistic practices in the tech sector under the Trump administration.
Google maintains that divesting parts of its business would stifle innovation and potentially weaken America’s technological leadership. Republican lawmakers have generally favored less regulatory intervention in business, making the eventual resolution of this case a critical test of conservative principles in tech regulation.
