Franchise News

Google Faces Landmark Antitrust Penalties as US Seeks Chrome Browser Sale

| By

The exterior of the new headquarters of Google is seen at 550 Washington Street in Hudson Square on January 09, 2024 in New York City. Getty Images/Michael M. Santiago

The US government is seeking a dramatic shift in how Google operates, calling for the sale of its popular Chrome web browser. This comes after a major court ruling earlier this year, which found that Google broke antitrust laws by using unfair practices to dominate the search engine market.

If a federal judge agrees, this could mark one of the largest antitrust penalties for a tech company in history, potentially changing the way Americans access information online.

Justice Department Pushes for Google to Sell Chrome in Antitrust Bid

The Justice Department, supported by several states, filed a motion this week asking the court to force Google to sell Chrome. Chrome, which is used by billions of people worldwide, has played a key role in helping Google maintain its dominance in the search market.

The government argues that separating Chrome from Google's other services could help restore fair competition by preventing Google from continuing its monopoly, CNN said.

A key part of the case centers around Google's exclusive deals with major companies, like Apple and Samsung, which make Google's search engine the default on their devices. These agreements, according to the government, have made it nearly impossible for smaller search engines to compete, resulting in fewer choices for consumers and stifling innovation.

The Justice Department wants these contracts banned and suggests that Google should be forced to share its search data with other search engines for the next decade.

The proposed breakup of Chrome could have far-reaching effects, disrupting the close integration of Google's services, including its Android operating system and various artificial intelligence products.

The government's proposal also includes measures to limit Google's power in the AI field, requiring the company to give users the option to opt-out of allowing their data to be used for AI training.

Google Opposes US Government's Antitrust Demands, Warns of Privacy Risks

Google has strongly opposed these moves, arguing that the proposed changes are extreme and could harm user privacy and security.

In a public statement, Google's top lawyer, Kent Walker, called the government's demands overreaching and said they could hurt the company's ability to provide useful products and services. Google plans to submit its own proposal to the court in December.

This case is part of a broader effort by the US government to address concerns about the growing power of big tech companies. The Justice Department's investigation into Google's search business started under the Trump administration and has continued through the Biden administration.

The case is viewed as one of the most significant antitrust lawsuits against a tech company in decades, drawing comparisons to the government's battle with Microsoft in the 1990s. That case, which accused Microsoft of using its control over Windows to limit competition, helped pave the way for new browsers like Mozilla's Firefox and Google's Chrome.

In addition to the Chrome proposal, the Justice Department is also pushing for other changes, such as limiting Google's ability to pay companies like Apple to remain the default search engine.

According to Techopedia, in 2022, it's estimated that Google paid Apple about $20 billion to keep its search engine as the default in Safari, further strengthening its dominance.

The outcome of this case could have major implications for the future of online search and digital advertising. While the Justice Department is seeking significant changes, Google is expected to continue fighting the case in court. A decision is not expected until 2025, but the case is already drawing attention as one of the most important legal battles in the tech industry.

© 2024 Franchise Herald. All rights reserved.

Franchise News

Real Time Analytics