Monopoly

Google may be forced to sell Chrome browser: antitrust battle

The US officials' demands, if accepted by the court, have the potential to reshape the online search market and the burgeoning artificial intelligence industry

by Biagio Simonetta

FILE PHOTO: Google Chrome logo is seenin this illustration picture taken June 18, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

3' min read

3' min read

What if Google was forced to sell its very popular Chrome browser? No, it is not science fiction. Because that is precisely the request coming to Big G from the American antitrust authorities. A move that is sensational, considering how central - for Google - its browser is, the most used in the world with bulgar percentages both on computer and on mobile.

It should be recalled that last August, a court ruled that Google had illegally monopolised the search market, in a mix of services (including AI) that obviously finds its greatest outlet in its Android smartphone operating system. Now, according to Bloomberg reports, the antitrust department is ready to demand major measures to unravel this monopoly. An accusation from which Google, it should be pointed out, has always rejected, maintaining that its services are freely chosen by users because they are the best.

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Antitrust officials, along with states that have joined the case, also plan to recommend Wednesday that federal judge Amit Mehta impose data licensing requirements. These are demands that, if accepted by the judge hearing the case, have the potential to shape the online search market and the burgeoning artificial intelligence industry. The case was filed under the first Trump administration and continued under President Joe Biden. It represents the most aggressive effort to rein in a technology company since Washington tried unsuccessfully to dismember Microsoft two decades ago.

Clearly, everything revolves around the fate of Chrome. For Big G, a two trillion dollar company, losing the world's most popular web browser would be a huge blow that would have a strong impact on Google's advertising business, which is also rooted in user profiling.

But in this story there is also the question of whether Google also used Chrome to direct users to its flagship artificial intelligence product, Gemini, which has the potential to evolve from a response bot to an assistant that follows users on the web.

Lee-Anne Mulholland, Google's vice president of regulatory affairs, said that the Justice Department "continues to promote a radical agenda that goes far beyond the legal issues in this case" and added that "the government putting its thumb on the scale in these ways would hurt consumers, developers, and American technology leadership at exactly the time when it is most needed". For its part, the Justice Department declined to comment on the manager's claims.

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A few numbers: the Chrome browser controls about 61% of the market in the United States, according to StatCounter, and is the most widely used browser in the world. This percentage becomes even more robust in the mobile market.

Government lawyers have met with dozens of companies over the past three months while preparing the recommendation. The states are still considering adding some proposals and some details may change, they said.

Antitrust officials backed away from a stricter option that would have forced Google to sell Android, the people said.

Google's Alphabet prepares for antitrust rigmarole

The August ruling that Google violated antitrust laws in both the online search and search text ad markets followed a 10-week trial last year. The company said it intends to appeal.

The judge set a two-week hearing in April to determine what changes Google must make to remedy the illegal behaviour and expects to issue a final ruling by August 2025.

The agency and the states decided to recommend that Google be required to licence the results and data of its famous search engine and to give websites more options to prevent their content from being used by Google's artificial intelligence products, the people said.

Antitrust enforcers are ready to propose that Google separate its Android smartphone operating system from its other products, including search and its Google Play mobile app store, which are now bundled together, the people said. They are also ready to seek a requirement that Google share more information with advertisers and give them more control over where their ads are displayed.

Justice Department lawyers and state attorneys general included all of these options in an initial filing in October, as well as a ban on the type of exclusive contracts that were the focus of the case against Google.

A forced spin-off, should it occur, would also depend on finding an interested buyer. Those who could afford and might want the property, such as Amazon.com Inc, are also facing antitrust scrutiny that could prevent such a mega-deal. "My view is that this is extremely unlikely," Mandeep Singh, an analyst at Bloomberg Intelligence, said in an e-mail. But, he added, it could see a buyer like OpenAI, the maker of the artificial intelligence chatbot ChatGPT. "This would give it both distribution and advertising business to integrate its chatbot subscriptions for consumers."

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