DOJ Proposes Chrome Divestiture in Landmark Google Antitrust Case
The U.S. Department of Justice (DOJ) is advocating for significant changes in the operations of Google as part of a key remedy proposal in its antitrust case against the tech giant. The most notable recommendation is that Google should divest its widely-used Chrome browser.
Proposed Divestiture Details
Filed on a recent Friday afternoon, the DOJ’s proposal stipulates that Google must “promptly and fully divest Chrome,” along with any related assets and services necessary for a successful transfer. The buyer of Chrome must be approved by the plaintiffs, and the terms require court and plaintiff approval.
Restrictions on Partner Payments and Notifications
In addition to the divestiture, the DOJ’s proposal demands that Google cease payments to partners for preferential treatment concerning its search engine. Moreover, Google is required to provide advance notification of any joint ventures or partnerships with other companies competing in search or in search text ads.
Interestingly, the Department has opted against including a requirement for Google to divest its artificial intelligence investments, which were initially suggested as part of the plaintiffs’ recommendations last November. However, the tech company will still need to notify the DOJ of any future AI investments.
DOJ’s Stance on Google’s Market Conduct
The DOJ’s statement accompanying the filing asserts, “Through its sheer size and unrestricted power, Google has robbed consumers and businesses of a fundamental promise owed to the public—their right to choose among competing services.” The department argues that Google’s actions have fostered an economic environment where the company maintains its dominance regardless of market conditions.
Background of the Antitrust Case
The antitrust case against Google originated in 2020 and is considered one of the most consequential tech antitrust actions in recent history, reminiscent of the DOJ’s prolonged legal battles with Microsoft in the 1990s. The lawsuit pointed out that Google allegedly employed anticompetitive strategies to sustain its place as the leading search engine, establishing contracts that ensure it serves as the default search option on various browsers and devices.
Google’s Defense
Google contends that its market success—holding nearly 90 percent of the search market in the U.S.—is due to its advanced technological offerings. The company maintains that users can easily switch their default search engines and asserts that competition exists, notably from rivals like Microsoft.
Recent Court Rulings and Implications
In August 2024, U.S. District Judge Amit Mehta ruled that Google has held an illegal monopoly, particularly in general search and search text ads. Judge Mehta’s ruling focused on the contracts that Google has established with device manufacturers and browser partnerships, through which it earns a significant share of search queries in the U.S. It was noted that around 70 percent of search queries occur with Google as the default engine, largely because of these agreements which finance partners and hinder the growth of smaller search competitors.
Company Response to DOJ Proposals
Reacting to the proposed measures, Google spokesperson Peter Schottenfels stated in an email, “DOJ’s sweeping proposals continue to go miles beyond the court’s decision, and would harm America’s consumers, economy and national security.”
Conclusion
The outcome of this case and the DOJ’s proposals could significantly reshape the landscape of digital services and competition, sending ripples through the tech industry and affecting consumer access to various online services.