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US DoJ forcing Chrome sale would harm American consumers, developers, small businesses, says Google

FP Staff November 22, 2024, 12:41:47 IST

The US DoJ argues that disinvestments in Chrome and Android is necessary to counter Google’s unfair dominance in search and advertising. Google has criticised the DoJ’s recommendations as excessive, warning of potential harm to consumers, developers, and small businesses

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Google argued that forcing divestitures of Chrome and Android could disrupt the tech ecosystem, especially since both are built on open-source models that underpin countless third-party products. Image Credit: Reuters
Google argued that forcing divestitures of Chrome and Android could disrupt the tech ecosystem, especially since both are built on open-source models that underpin countless third-party products. Image Credit: Reuters

The US Department of Justice (DoJ) is urging sweeping changes to counter Google’s alleged monopoly on online search , and has officially proposed measures to the US District Court for the District of Columbia that include selling its Chrome browser and potentially even its Android operating system.

Prosecutors argue that such steps are necessary to level the playing field and address what they claim is Google’s unfair dominance in search and advertising.

If approved, the measures could remain in place for up to a decade, overseen by a court-appointed technical committee. This legal clash highlights the tension between regulatory efforts to foster competition and the business practices of one of the world’s most influential tech companies.

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DoJ to force sale of Android too?

The DoJ’s proposals include significant changes aimed at loosening Google’s grip on the market. These measures would prevent Google from entering exclusive agreements, such as paying companies like Apple to make its search engine the default on devices.

Prosecutors also want Google barred from reinvesting in browser or AI-related search competitors for five years and may require the company to sell Android if other remedies fail.

A technical committee would monitor compliance, empowered to demand access to Google’s internal documents, software code, and employees. Additionally, websites could opt out of their data being used to train Google’s AI products. These initiatives, according to prosecutors, aim to dismantle what they describe as a “feedback loop” reinforcing Google’s dominance through user data and ad revenue .

Google warns of far-reaching consequences

Google has criticised the DoJ’s recommendations as excessive, warning of potential harm to consumers, developers, and small businesses.

The company argued that forcing divestitures of Chrome and Android could disrupt the tech ecosystem, especially since both are built on open-source models that underpin countless third-party products. Google contends that such drastic measures could hinder innovation and weaken America’s global tech leadership.

The stakes are high for Google’s operations, particularly with Android and Chrome serving as critical elements of its ad-targeting strategy. The company’s shares dipped by nearly 5% following the announcement of the proposals.

Data sharing and licensing under the spotlight

Another contentious aspect of the case is the DoJ’s demand that Google share search data and results with competitors. Prosecutors suggest these steps would lower barriers for rivals and promote a healthier competitive landscape. Search engine DuckDuckGo has voiced support, stating that these proposals could make it easier for smaller players to challenge Google’s dominance.

However, Google remains firm, stressing that it won’t compromise user trust by sharing sensitive data in ways that could breach privacy standards. As the trial approaches in April, the battle lines are drawn, with Google set to present its counter-proposals in December. The outcome could have lasting implications for the tech industry’s future.

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