Google must sell Chrome to restore competition in online search, DOJ argues

Alphabet’s Google must sell its Chrome browser, share data and search results with rivals and take other steps — including possibly selling Android — to end its monopoly on online search, prosecutors argued to a judge on Wednesday.

The measures presented by the Justice Department are part of a landmark case in Washington that has the potential to reshape the way users find information.

They would remain in place for 10 years, enforced through a court-appointed commission to address what the judge overseeing the case deemed an illegal monopoly on search and related advertising in the US, where Google Processes 90 percent of searches.

“Google’s unlawful conduct has deprived rivals not only of critical distribution channels, but also of distribution partners that could otherwise enable access to these markets for competitors in new and innovative ways,” the DOJ and state antitrust enforcers said in a court filing Wednesday.

Their proposals include ending exclusive agreements in which Google pays billions of dollars annually to Apple and other device suppliers to make its search engine the default on its tablets and smartphones.

Google called the proposals staggering in a statement on Thursday.

“DOJ’s approach would result in unprecedented government overreach, harming American consumers, developers and small businesses – and endangering America’s global economic and technological leadership at precisely the time it is needed most ” said Kent Walker, Chief Legal Officer of Alphabet.

Alphabet shares closed almost 5 percent lower on Thursday.

U.S. District Judge Amit Mehta has scheduled a trial on the proposals for April, though newly elected President Donald Trump and the next antitrust head of the DOJ could intervene and change the course of the case.

Technical Committee

The proposals are wide-ranging, including banning Google from re-entering the browser market for five years and urging Google to sell its Android mobile operating system if other remedies fail to restore competition. The DOJ has also requested a ban on Google from purchasing or investing in competing search services, search-based artificial intelligence products, or advertising technology.

Publishers and websites would also be given the opportunity to opt out of participating in training for Google’s AI products.

A five-person technical committee appointed by the judge would enforce compliance at the suggestion of prosecutors. The committee, which Google would pay for, would have the power to subpoena documents, interview employees and delve into software code, the filing showed.

Together, the measures are intended to break “an ongoing feedback loop that Google further entrenches” through additional users, data and advertising dollars, prosecutors said.

Chrome and Android

Chrome is the world’s most used web browser and is a mainstay of Google’s business. Chrome provides user information that helps the company target ads more effectively and profitably.

Google has used Chrome and Android to favor its own search engine at the expense of rivals, prosecutors said.

Google has said that divesting Chrome and Android, which are built on open source code and are free, would hurt companies that have built on them to develop their own products.

The proposals would stop Google from requiring devices running Android to include its search or AI products.

Google would have the option to sell the software in lieu of compliance. The DOJ and state antitrust enforcers would have to approve potential buyers.

Google will have the opportunity to present its own proposals in December.

Share data

Under the proposals, Google would be required to license search results to competitors at a nominal cost and share the data it collects from users with competitors for free. It would be prohibited from collecting user data that it cannot share due to privacy concerns.

Prosecutors drafted the proposals after discussions with companies that compete with Google, including search engine DuckDuckGo.

“We think this is a really big deal and will lower competitive barriers,” said Kamyl Bazbaz, DuckDuckGo’s head of public affairs.

DuckDuckGo has accused Google of trying to circumvent European Union rules requiring data sharing. Google said it will not damage user trust by providing competitors with sensitive data.

© Thomson Reuters 2024