Google faces potential sale of Chrome as US Department of Justice targets antitrust concerns
PTC Web Desk: Alphabet Inc.'s Google may be forced to sell its widely used Chrome browser, a significant move in the ongoing antitrust case brought by the US Department of Justice (DoJ). The government agency is seeking a court order to sell Chrome in an effort to break up Google's alleged monopoly over the online search and advertising markets. In response, Google argues that such a sale would have detrimental effects on its consumers and the broader business ecosystem.
The DoJ's latest legal actions involve the consideration of "structural remedies" to prevent Google from leveraging certain products in ways that allegedly stifle competition. The department filed court papers last month indicating that it was considering steps to limit Google’s influence in the market. On Wednesday, the DoJ is expected to formally present the proposal to a judge, with the intention of dismantling parts of Google’s dominant position, according to a Bloomberg report.
As of October, Google’s Chrome browser holds nearly 90% of the global search engine market share, with its share in the US market at around 61%, as reported by StatCounter. The DoJ filed its initial case against Google during Donald Trump’s presidency, and in August, a federal judge, Amit Mehta, ruled that Google operates a monopoly in the online search industry. Following this ruling, prosecutors have explored several potential remedies to counteract Google's dominance.
Among the proposed solutions, the DoJ has suggested that Google be prohibited from engaging in exclusive agreements with companies like Apple, where Google pays to remain the default search engine on Apple devices. Additionally, one of the potential actions on the table is the divestiture of parts of Google’s business, including its Android operating system. The proposal to sell Chrome is among these recommendations and would likely be introduced in the coming weeks.
According to Bloomberg Intelligence analyst Mandeep Singh, if Google were to sell Chrome, the browser could be valued at approximately $15 to $20 billion, as it currently has over 3 billion monthly active users.
Google has strongly opposed the proposed measure, calling it "radical" and warning of the negative impact it would have on both consumers and businesses in the US. The company has emphasised that a sale would disrupt its business model, lead to higher device costs, and undermine its ability to compete with Apple’s iPhone and App Store.
Earlier, Google denied that it operates a monopoly in the online search sector. In response to the DoJ’s filings, the company has argued that separating Chrome or Android from its business would destabilise these platforms and harm their competitive edge.
- With inputs from agencies
