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DOJ Seeks Historic Chrome Browser Divestiture in Antitrust Case Against Google

By  |  November 19, 2024

The US Department of Justice (DOJ) is pushing for Alphabet Inc.’s Google to divest its Chrome browser, aiming to reduce the company’s dominance across the digital search, advertising and AI markets. The request, according to Bloomberg, comes as part of the DOJ’s ongoing antitrust case against Google, following a recent court ruling that the company has illegally monopolized search and search advertising.

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    Proposed Restrictions Could Impact AI, Search, and Mobile Markets

    Judge Amit Mehta, who ruled in August against Google’s practices, will now consider a range of measures that DOJ officials and participating states believe will restore competition in the online search and AI sectors. Among the suggested remedies are stricter data-sharing requirements, licensing mandates for Google’s search data and the separation of Android from Google’s core products. Bloomberg reports that these recommendations seek to limit Google’s ability to leverage its platforms for targeted advertising, a key revenue stream.

    Chrome’s Dominance in Browser Market at Center of DOJ’s Concerns

    The DOJ’s case highlights Chrome’s prominent role in Google’s ecosystem. With Chrome controlling about 61% of the U.S. browser market, as reported by StatCounter, regulators argue that the browser strengthens Google’s grip on user data, enabling enhanced ad targeting and product promotion. Per Bloomberg, officials believe divesting Chrome could increase competition by reducing Google’s control over data that fuels its AI and advertising technologies.

    Google Responds to DOJ Actions, Citing Potential Harm to Innovation

    Google has pushed back against the DOJ’s recommendations. According to Google’s vice president of regulatory affairs, Lee-Anne Mulholland, the DOJ’s stance represents a “radical agenda” that could harm consumers, developers, and U.S. tech leadership. Despite Google’s objections, the DOJ’s antitrust case has continued to gain momentum across two presidential administrations, underscoring a rare bipartisan consensus on regulating major tech players.

    Related: US Supreme Court Declines to Hear States’ Appeal in Google Antitrust Case

    Antitrust Remedies Could Change AI Content and Data-Sharing Practices

    As Google integrates AI-driven answers, or “AI Overviews,” into its search results, it faces increasing scrutiny over its data practices. Bloomberg notes that website owners are confronted with difficult choices regarding Google’s AI: opting out of data sharing could diminish their visibility on search pages, while remaining in could fuel Google’s AI development. The DOJ’s proposed remedies include provisions allowing sites more control over their content’s usage by Google’s AI products.

    Future Outlook: DOJ’s Recommendations Set Stage for April 2025 Hearing

    Judge Mehta will review the DOJ’s proposals in April, with a final ruling expected by August 2025. In preparation, government attorneys have engaged with numerous industry players to ensure a comprehensive case. Analysts remain divided on potential outcomes; Bloomberg Intelligence’s Mandeep Singh believes that while a Chrome sale may be unlikely, a buyer such as OpenAI could theoretically benefit from the browser’s market reach.

    Source: Bloomberg