On Wednesday, prosecutors argued in court that Alphabet’s Google should divest its Chrome browser, share search data with competitors, and consider selling its Android operating system to eliminate its monopolistic hold on online search. These requirements are part of a significant antitrust case underway in Washington, which could dramatically alter how users access information online.
The proposed measures would last for up to ten years and would be enforced by a court-appointed committee established to address what the presiding judge has identified as an illegal monopoly in search and related advertising. Currently, Google processes around 90 percent of online searches in the United States.
The Department of Justice and state antitrust authorities stated in a court filing that “Google’s unlawful behavior has deprived rivals not only of critical distribution channels but also distribution partners who could otherwise enable entry into these markets by competitors in new and innovative ways.”
Among the proposals is the suggestion to terminate exclusive agreements wherein Google pays billions to Apple and other device manufacturers to have its search engine set as the default on smartphones and tablets.
In response, Google expressed strong opposition to the suggestions, labeling them as staggering and excessively intrusive. Kent Walker, Alphabet’s Chief Legal Officer, stated, “DOJ’s approach would result in unprecedented government overreach that would harm American consumers, developers, and small businesses – and jeopardize America’s global economic and technological leadership at precisely the moment it’s needed most.”
Following the news, shares of Alphabet fell nearly 5 percent on Thursday.
US District Judge Amit Mehta has scheduled a trial for April regarding these proposals, although changes could occur with the incoming administration under President-elect Donald Trump and the new head of the DOJ’s antitrust division.
Proposed Oversight
The measures proposed encompass a broad range of actions, including a five-year prohibition on Google re-entering the browser market and a condition that the company sell its Android mobile operating system if other remedies fail. Additionally, the DOJ has requested that Google be forbidden from acquiring or investing in search competitors or query-based artificial intelligence products.
Under the proposals, websites and publishers would also have the option to opt out of contributing data for Google’s AI training. A five-member technical committee appointed by the court would oversee compliance with these proposals. This committee, which would be funded by Google, would have the authority to request documents, conduct employee interviews, and examine software code.
The aim of these comprehensive measures is to disrupt what prosecutors describe as a “perpetual feedback loop” that reinforces Google’s dominance through increased user engagement, data accumulation, and advertising revenue.
Impact on Chrome and Android
Chrome is currently the most utilized web browser globally and plays a crucial role in Google’s business model by allowing the company to gather user data for targeted advertising. Prosecutors assert that Google has manipulated its Chrome and Android platforms to favor its own search services at the expense of competitors.
Google contends that divesting Chrome and Android, both built on open-source code and provided at no cost, would adversely affect companies that rely on these systems to create their own products. The proposals would also prohibit Google from requiring that devices operating on Android must incorporate its search or AI functionalities.
Should compliance become necessary, Google could opt to sell the software, with any potential buyers requiring approval from the DOJ and state antitrust officials.
Google will have the opportunity to present its counter proposals in December.
Data Sharing Framework
Under the proposed measures, Google would be mandated to license its search results to rivals at a minimal cost and provide user data to competitors without charge, while being restricted from collecting any user information that cannot be shared due to privacy regulations.
These proposals were developed in consultation with various companies that compete with Google, including the search engine DuckDuckGo.
Kamyl Bazbaz, head of public affairs at DuckDuckGo, commented, “We think this is a really big deal and will lower the barriers to competition.” DuckDuckGo has accused Google of trying to circumvent European Union regulations surrounding data sharing, while Google insists it will not risk undermining user trust by disclosing sensitive data to competitors.
© Thomson Reuters 2024
