Google Responds Strongly to Reports of Potential Chrome Divestiture

Google Warns of Consumer Harm if Forced to Sell Chrome Amid Antitrust Case

Google has argued that divesting Chrome, the world’s most popular web browser, would harm both consumers and businesses. This follows reports that the U.S. Department of Justice (DOJ) plans to propose the measure to a federal judge on Wednesday, according to Bloomberg.

In August, Judge Amit Mehta ruled that Google holds a monopoly in online search and has since been deliberating on potential remedies or penalties. The DOJ has not commented on the recent reports, but Google has expressed strong opposition to the proposed actions.

“The DOJ continues to push a radical agenda that goes far beyond the legal issues in this case,” said Lee-Anne Mulholland, a Google executive. She added that such measures would negatively impact consumers, developers, and U.S. technological leadership.

The DOJ is also reportedly considering additional restrictions for Google’s artificial intelligence, Android operating system, and data practices.

Chrome’s Dominance in Focus

Chrome currently holds a commanding global market share of 64.61%, according to Similarweb. Google’s search engine, which is integrated into Chrome and other platforms like Safari on iPhones, accounts for nearly 90% of the global search market, per Statcounter.

Judge Mehta has highlighted the value of this integration, describing the default search engine as “extremely valuable real estate” for Google. He noted in August that potential competitors would need to pay billions to secure similar agreements.

Potential Breakup Proposals

The DOJ is expected to submit its final proposed remedies by Wednesday. In October, it indicated that a breakup of Google could be among its recommendations, potentially targeting Chrome, Android, and the Google Play app store to prevent unfair advantages for Google’s search products.

Google has previously denied operating a monopoly and criticized any breakup efforts. The company warned that separating parts of its business, such as Chrome or Android, would disrupt their business models, increase device costs, and weaken competition with Apple.

“Breaking them off would change their business models, raise the cost of devices, and undermine Android and Google Play in their robust competition with Apple’s iPhone and App Store,” the company stated, adding that Chrome’s security could also be compromised.

Financial and Market Impact

Despite the ongoing legal challenges, Google’s search and advertising revenues rose by 10% to $65.9 billion in its latest quarterly report. CEO Sundar Pichai highlighted the growing adoption of the company’s AI-powered search tools.

Investors are closely monitoring the DOJ’s next steps and Google’s share price, given the potential implications of the proposed remedies.