The USA Department of Justice has required google to divest its Chrome browser, after the company was ruled to have monopolized the search market in August of this year.
According to Zhitong Finance APP, the USA Department of Justice has required google (GOOGL.US) to divest its Chrome browser, after the company was ruled to have monopolized the search market in August of this year.
The Chrome browser, launched by google in 2008, provided this search giant with data for targeted advertising. The USA Department of Justice stated in a document on Wednesday that forcing the company to give up Chrome would create a fairer competitive environment for search competitors.
The 23-page document states: "To compensate for these harms, the (proposed final judgment) requires google to divest Chrome, which will permanently prevent google from controlling this critical search access point and allow competing search engines to access the browser, which for many users, Chrome is the gateway to the internet."
Moreover, the USA Department of Justice has stated that google cannot sign exclusive agreements with third parties such as apple (AAPL.US) and Samsung (SSNLF.US). The USA Department of Justice also stated that google is prohibited from preferentially providing search services in its other products.
The USA Department of Justice also stated that the remedies should prevent google "from eliminating emerging competitive threats through acquisitions, minority private equity investments, or partnerships." The USA Department of Justice stated, "The proposed remedies will be effective for 10 years." The document also stated that google should be required to submit a report to a technology committee every month, outlining any changes to its search text advertisement auctions.
The document states: "The proposed remedies aim to end google's illegal actions and open the market for the emergence of competitors and new entrants."
According to reports, Google's search advertising revenue in the third quarter was 49.4 billion dollars, accounting for three-quarters of total advertising sales during the same period.
The requirements from the USA Department of Justice represent the agency's most aggressive attempt to break up a technology company since it filed an antitrust lawsuit against microsoft (MSFT.US) in 2001.
In addition to demanding Google divest its Chrome browser, the USA Department of Justice stated that forcing the search company to divest its Android mobile operating system would also help restore competition, 'but the plaintiffs recognize that such divestiture may provoke strong opposition from Google or other market participants.'
Conversely, the USA Department of Justice suggested that other remedies should be sufficient to 'weaken Google's ability to leverage its control over the Android ecosystem to support its general search services,' and if they 'ultimately fail to achieve meaningful remedies of high standards in these key markets, the court may require the restoration' of the proposal to divest Android.
In August, a federal judge ruled that Google has a monopoly in the search market. This ruling was made after the government filed a landmark case in 2020, accusing Google of controlling the entire search market by setting strong entry barriers and maintaining a feedback loop of its dominant position. The court found that Google violated Section 2 of the Sherman Act, which prohibits monopolization.
Last month, the USA Department of Justice stated that it is considering breaking up Google's business, including the potential for splitting its Chrome, Play, or Android divisions.
Additionally, the USA Department of Justice also suggested limiting or banning non-disclosure agreements and 'other revenue-sharing arrangements related to search and search-related products.' This would include Google's search agreements with apple on the iPhone, as well as its search agreements with Samsung on its mobile devices, which cost the company billions of dollars each year.
Google has stated that it will appeal the antitrust ruling, which will prompt any final remedial decision.
However, according to some legal experts, the most likely outcome is that the court will require google to cancel certain exclusive agreements, such as the trade between the company and apple. Experts indicate that while divestiture is unlikely, the court may require google to make it easier for users to access other search engines.