The United States Department of Justice is demanding that Google sell off its Chrome browser after a court ruling in August found the company to be a monopolist in the search market.
In a filing on Wednesday, the DOJ argued that divesting Chrome would help level the competitive landscape for search engine rivals. The proposed remedy aims to “permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet.”
Chrome collects data that Google utilizes for targeted advertising. In the last quarter, search advertising generated $49.4 billion in revenue for Alphabet, its parent company, accounting for 75% of its total ad sales during that period.
Additionally, the Justice Department proposed several other measures to address Google’s alleged monopolistic practices. These include prohibiting Google from forming exclusive agreements with companies like Apple and Samsung, and barring the tech giant from favoring its search service within its other offerings. The DOJ is also pushing for Google to sell off its Android mobile operating system. Furthermore, the agency wants to block Google from stifling potential competitors through acquisitions, investments or partnerships. These proposed remedies are intended to remain in effect for a decade.
During the antitrust trial, Microsoft CEO Satya Nadella provided testimony highlighting Google’s market dominance, stating, “You get up in the morning, you brush your teeth and you search on Google.”
He explained that Microsoft’s Bing search engine struggled to compete because Google had secured default placement agreements across multiple platforms, including browsers, desktops and mobile devices from manufacturers like Apple and Samsung.
The DOJ’s proposal to break up Google marks its most ambitious effort to dismantle a technology giant since its antitrust lawsuit against Microsoft, which was settled in 2002. In the Microsoft case, the Justice Department claimed the company stifled competition by offering its browser for free and setting it as the default on its widely-used Windows operating system. The resulting settlement paved the way for increased competition in the web browser market, which ultimately allowed Google to experience rapid growth during the 2000s.
What’s Next For Google
Google plans to challenge the monopoly ruling, which would likely prolong the legal process. The company is scheduled to submit its proposed remedies in December, with a final judicial decision anticipated in August 2025.
In a corporate blog post this week, Google president of global affairs Kent Walker characterized the Justice Department’s proposed breakup of the company as a “radical interventionist agenda.”
In the public policy memo, Walker argues that the proposed decision would pose risks to the security and privacy of millions of Americans and diminish the quality of popular products. He claims it would necessitate sharing Google’s innovations, results and users’ personal search queries with unspecified foreign and domestic companies. Walker contends that this would discourage Google’s investments in artificial intelligence, which he considers “the most important innovation of our time, where Google plays a leading role.”
If Google Is Forced To Divest
Experts suggest that a breakup of Google is unlikely; instead, the DOJ appears to be leveraging this situation as a negotiation strategy to compel Google to agree to less drastic measures, such as eliminating certain exclusive contracts and facilitating easier access for users to alternative search engines.
The potential divestiture of Google’s Chrome business could have far-reaching consequences for its employees. While some may find new opportunities within Google or elsewhere in the tech industry, the transition period could likely create significant uncertainty and stress for many affected workers.
Specific employee impact would depend on what entity acquires Chrome, how the divestiture is structured and what strategies the new owner implements.
Compensation structures could be adjusted, potentially altering employee salaries and benefits. There could also be some layoffs as the new company restructures or if there are redundancies in roles.
Moreover, the appeal of working for a renowned tech giant like Google is a major attraction for many professionals, as the company’s esteemed reputation holds considerable influence and benefits within the industry. Without the backing of Google, employees may seek to move on in search of prestige elsewhere. Consequently, the Chrome division could potentially experience a significant departure of its top talent.