Split suggestions and the current monopoly status of google.

Government lawyers stated that only if google separates its search engine from internet plus-related products (such as Chrome browser and android mobile operating system) can market competition be restored. Currently, Chrome browser has about two-thirds of the global market share. The search in the Chrome address bar defaults to google search unless users manually change the settings.

The department of justice also requires that google must not give preferential treatment to its search engine in its android devices. If google violates this rule in the future, the android operating system will be stripped according to government proposals.

Android is currently running on billions of smart phones including devices from samsung and google pixel.

In addition, google will also be prohibited from paying fees to become the default search engine for any browser (including any future new owner of Chrome). Google currently pays apple (AAPL.O) hundreds of billions of dollars each year to make it the default search engine of Safari browser.

"Remedies must be able to promote and incentivize an unconstrained search ecosystem that drives competition and innovation and attracts more consumers and advertisers," wrote the department of justice and plaintiffs from more than 20 states.

AI data issues and department of justice proposals.

The Department of Justice's proposal also targets Google's role in the emerging ai market, where ai is gradually replacing traditional search. The Department of Justice hopes that the court will mandate Google to allow website publishers to choose not to have their data used for training ai models, or Google must pay fees to obtain this data.

Kent Walker, Google's global affairs president, called the Department of Justice's proposal an "extremely excessive proposal," stating that "this will undermine the USA and its leadership in the global technology sector." Google plans to submit its own solutions to the court in December.

The market share and advertising revenue pressures facing Google.

According to Judge Amit Mehta's ruling, about half of the internet searches in the USA come from devices such as Android smartphones, apple devices, and Firefox browsers that Google pays to become the default search engine. Another 20% of searches are completed through the Chrome browser downloaded by users.

In 2022, Google's parent company Alphabet generated 57% of its revenue from advertisements next to search results, amounting to as much as 307 billion dollars.

The Department of Justice proposed to divest Chrome and the Android operating system, aiming to break Google's strategy of consolidating market share through associated products. Judge Mehta will hold hearings in April 2025 to determine how to resolve Google's antitrust issues and plans to issue a ruling in August. Google is expected to appeal this decision, which may delay the effective date of the ruling.

The significance and challenges of divestiture.

The Department of Justice's proposal is a key component of the Biden administration's antitrust enforcement efforts, aimed at weakening the market dominance of technology giants like Google, apple, and amazon. Google is the first defendant to go to court, and the request to divest Chrome indicates that the government will take extreme measures to limit the monopoly power of technology giants.

Although US courts had previously revoked a similar breakup ruling in the Microsoft antitrust case before 2025, the Justice Department clearly hopes to provide fair competition for other search engines by breaking up Chrome and Android.

Yale economist and former Obama administration Justice Department official Fiona Scott Morton stated that as long as Google continues to control Chrome and Android, there will be a strong incentive to direct users to its search engine, so breaking them up is the best way to restore competition.

The importance of Chrome to Google.

Since its launch in 2008, Chrome and Android have been the core pillars of Google's business. After the divestiture of Chrome, its new owner could choose other search engines as the default option or let users decide for themselves.

Although Google remains the most popular search engine globally, and may still receive a significant amount of search traffic through Safari and other browsers even after the divestiture of Chrome and Android, even a small loss could impact its industry dominance.

In addition, divesting Chrome will cause Google to lose user data, which currently helps it target advertisements accurately. The Justice Department's proposal also requires Google to share search data with competitors, which will further undermine its advertising competitiveness.

Whether the divestiture of Chrome and Android can effectively promote fair competition in the search market still requires further discussion and ruling by the courts and the Justice Department. However, Google's industry dominance has already been significantly threatened.