On Friday, Alphabet’s Google put forward a proposal aimed at modifying its agreements with Apple and other companies to establish itself as the default search engine on new devices. This move is intended to comply with a recent ruling by a US court that determined Google’s practices constitute an illegal monopoly in the online search market.
This approach is significantly more limited than the government’s demand for Google to divest its Chrome browser, which the company has labeled as an extreme measure that would disrupt the search market.
In court documents, Google urged US District Judge Amit Mehta to proceed with caution regarding the company’s obligations to enhance competition. This call for prudence comes after the judge’s ruling that deemed Google a monopolistic entity in the realm of online search and related advertisements. Google pointed out that courts traditionally hesitate to implement antitrust solutions that may stifle innovation.
Google emphasized the importance of cautious intervention, particularly in a landscape where rapid advancements in artificial intelligence are altering user interactions across various online platforms, including search engines.
Despite its intent to appeal the ruling once the case concludes, Google believes the forthcoming “remedies” phase should concentrate on the distribution contracts with browser developers, mobile device makers, and wireless carriers.
Judge Mehta indicated that these agreements afford Google a considerable, often hidden advantage over competitors, resulting in the pre-installation of Google’s search engine on most devices sold in the United States.
The judge noted that these contracts are particularly difficult for Android manufacturers to bypass, as they must accept the installation of Google search to gain access to the Google Play Store on their devices.
To address these concerns, Google’s proposal suggests making these agreements non-exclusive and separating the Play Store from Chrome and search functionalities for Android manufacturers.
Furthermore, Google plans to allow browser developers who choose to make its search engine the default to reassess that decision on an annual basis.
Revenue Sharing
In contrast to the government’s stance, Google’s proposition will not eliminate the revenue-sharing agreements that allocate a portion of ad revenue generated from searches to device and software firms that designate Google as the default search engine.
Independent browser companies like Mozilla, creators of Firefox, have expressed that these financial contributions are vital for their operations. Notably, Apple reportedly earned around $20 billion from its arrangement with Google in 2022.
Kamyl Bazbaz, a representative for search competitor DuckDuckGo, criticized the proposal, stating that it seeks to preserve the existing framework.
“When a court identifies a breach of competitive laws, the solution must not only halt the illegal practices and prevent future violations but also restore competition in the impacted sectors,” he commented.
Google’s proposal is preparing the ground for a trial scheduled by Judge Mehta in April. During this trial, the US Department of Justice and several states intend to argue for comprehensive remedies, which may include the divestment of Chrome and possibly the Android operating system.
The government is expected to present witnesses from OpenAI, AI search startup Perplexity, and Microsoft, according to court documents.
Prosecutors are also seeking for Google to discontinue its practice of paying to secure default search engine status, halt investments in search competitors, and license its search results and technology to rivals.
The proposed measures aim to encourage innovation within the online search domain, addressing concerns raised by Judge Mehta that Google’s dominant market presence hinders competitors from acquiring the necessary search data to enhance their products while preventing Google from extending its control into artificial intelligence.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
