DOJ Urges Google to Sell Chrome: Impact on Market Competition

In a significant move, the U.S. government has proposed that Google sell its Chrome browser to curb its dominance in the internet search market. Google’s control over both the Chrome browser and its search engine has long been viewed as a threat to fair competition, prompting the Department of Justice (DoJ) to take action aimed at leveling the playing field.

The DOJ’s Case Against Google

The DoJ recently urged Google to divest from Chrome, arguing that the browser strengthens Google’s search monopoly. This proposal follows an August ruling by a U.S. District Court judge in Washington, D.C., which found Google guilty of monopolistic practices. The court highlighted Google’s multi-billion-dollar agreements to position its search engine as the default option on browsers and smartphones. For instance, many devices ship with Chrome pre-installed, thanks to deals where Google compensates manufacturers to secure this status.

“Google must divest Chrome, which has ‘fortified [Google’s] dominance’… so that rivals may pursue distribution partnerships that this ‘realit[y] of control’… today prevents,” the DOJ stated in its filing.

The DoJ added, “The playing field is not level because of Google’s conduct, and Google’s quality reflects the ill-gotten gains of an advantage illegally acquired. The remedy must close this gap and deprive Google of these advantages.”

Google’s Response

Google has strongly opposed the government’s proposal, describing it as extreme and detrimental to consumers and technological innovation. Kent Walker, Google’s president of global affairs, criticized the DoJ’s approach in a blog post.

“The government’s staggering proposal would hurt consumers and America’s global technological leadership,” Walker wrote. He added that the suggestion would disrupt Google’s ecosystem of products and require disclosing sensitive data, including user search queries, to third parties.

Additionally, Walker argued that the proposal would discourage investments in artificial intelligence, an area where Google remains a key player.

The Android Connection

Beyond Chrome, Google’s control of the Android operating system has also come under scrutiny. Android powers the majority of smartphones worldwide, and the DoJ claims Google uses its dominance in Android to promote its search engine unfairly.

To address this, the DoJ has suggested that Google divest Android as a potential solution, though it acknowledged that such a move could face strong opposition from Google and other stakeholders. Alternatively, the government has proposed measures to limit Google’s ability to exploit Android to maintain its search monopoly.

Market Share and the Road Ahead

As of February 2024, Google Search commands an overwhelming 91.62% of the global market, compared to Bing’s 3.31%. The DoJ believes breaking up Google’s ecosystem could open the door for competitors to challenge its dominance effectively.

The next court hearing on the proposed divestment of Chrome is scheduled for April 2025. The outcome could reshape the digital landscape, determining whether Google maintains its stronghold or faces significant restructuring.