Google May Be Forced to Divest Chrome and Share Data: DOJ’s Bold Measures to Restore Competition in Online Search

Alphabet's Google is facing a significant challenge from U.S. prosecutors, who are pushing for drastic measures to dismantle the tech giant's dominance in online search. The U.S. Department of Justice (DOJ) has proposed that Google sell its Chrome browser, share search data and results with competitors, and comply with other reforms to curb its monopoly power in internet search and advertising.

The DOJ’s recommendations, filed in a Washington federal court on Wednesday, could subject Google to 10 years of strict regulatory oversight. This follows an earlier ruling by the court, which found Google guilty of maintaining an illegal monopoly in online search and associated advertising markets.

Why the DOJ’s Actions Are Significant

Google currently controls around 90% of the online search market, a level of dominance that U.S. prosecutors argue stifles competition and innovation.

“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,” the DOJ stated in court filings.

The DOJ's demands are extensive and aim to fundamentally restructure Google's business practices:

• Divesting Chrome: The DOJ insists that Google must sell its Chrome browser to open the browser market to more competition.

• Data Sharing: Google may have to share search data and results with rival search engines.

• Market Entry Restrictions: Google would be barred from re-entering the browser market for at least five years if Chrome is divested.

• Android Operating System: If initial remedies fail, the U.S. Department of Justice (DOJ) has suggested Google may need to sell its Android mobile operating system.

• Investment Restrictions: Google would also face prohibitions on acquiring or investing in rival search engines, query-based AI products, or advertising technology.

Ending Exclusive Agreements with Apple and Other Vendors

The DOJ, along with several states, is also advocating for an end to exclusive agreements in which Google pays billions of dollars annually to Apple and other device manufacturers to make its search engine the default on smartphones and tablets.

These practices, prosecutors argue, not only consolidate Google's market power but also make it nearly impossible for competitors to gain a foothold.

Google’s Response and Legal Strategy

Google has described the DOJ's proposals as "radical," arguing that such measures would harm U.S. consumers and businesses while jeopardizing American competitiveness in artificial intelligence. The company plans to appeal the court's decisions.

The legal battle is far from over. Google will have the opportunity to present its counter-proposals in December. A trial on the DOJ's remedies has been scheduled for April 2024.

Potential Political and Legal Implications

The future of this case could also be influenced by political changes, as the incoming administration of President-elect Donald Trump and the new DOJ antitrust chief may alter the course of the legal proceedings.

Conclusion

The DOJ's sweeping proposals mark a pivotal moment in the ongoing battle to regulate big tech and restore competition in online search and advertising markets. By targeting Google's dominance through divestments, restrictions, and oversight, the U.S. government aims to create a more level playing field for competitors and foster innovation. However, Google's firm resistance and planned appeals underscore the complexity and high stakes of this case.

As the legal proceedings unfold, the outcome will have significant implications not just for Google but also for the broader tech industry, consumers, and global competition standards. Whether these measures will effectively curb Google’s monopoly or disrupt its business model remains to be seen, making this case one of the most closely watched antitrust battles in recent history.