Google Must Sell Chrome to Restore Competition in Online Search

Created by Admin in Investors Digests 22 Nov 2024
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The measures presented by the Department of Justice are part of a landmark case in Washington which has the potential to reshape how users find information.
They would be in place for up to a decade, enforced via a court-appointed committee to remedy what the judge overseeing the case deemed an illegal monopoly in search and related advertising in the U.S., where Google processes 90% of searches.


"Google's unlawful behaviour has deprived rivals not only of critical distribution channels but also distribution partners who could otherwise enable entry into these markets by competitors in new and innovative ways," the DOJ and state antitrust enforcers said in a court filing.


Their proposals include ending exclusive agreements in which Google pays billions of dollars annually to Apple (NASDAQ:AAPL) and other device vendors to make its search engine the default on their tablets and smartphones.
Google called the proposals staggering.


"DOJ's approach would result in unprecedented government overreach that would harm American consumers, developers, and small businesses - and jeopardize America's global economic and technological leadership at precisely the moment it's needed most," said Alphabet Chief Legal Officer Kent Walker.
Alphabet shares closed nearly 5% lower.


U.S. District Judge Amit Mehta has scheduled a trial on the proposals for April, though President-elect Donald Trump and the DOJ's next antitrust head could step in and change course in the case.
Google would be required under the proposals to license search results to competitors at nominal cost and share data it gathers from users with competitors for free. It would be barred from collecting any user data that it cannot share because of privacy concerns.


Prosecutors crafted the proposals after speaking with companies that compete with Google, including search engine DuckDuckGo.
"We think this is a really big deal and will lower the barriers to competition," said Kamyl Bazbaz, DuckDuckGo's head of public affairs.
DuckDuckGo has accused Google of trying to dodge European Union rules requiring data sharing. Google said it will not compromise user trust by giving competitors sensitive data.

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