Google faces historic breakup bid as DOJ seeks Chrome divestiture

The Department of Justice (DOJ) is escalating its battle against Alphabet Inc.'s Google, proposing a historic action to curb the company’s dominance in the tech sector.

DOJ antitrust officials are planning to request that a federal judge order Google to divest its Chrome browser, a move that could significantly reshape the digital landscape, Caliber.Az reports via foreign media.

The DOJ's request follows an earlier ruling in August, which determined that Google had illegally monopolized the online search market. Alongside Chrome, antitrust officials will propose measures aimed at addressing Google's role in artificial intelligence (AI) and its control over the Android operating system. States that have joined the case will back the DOJ in recommending data-sharing requirements to foster competition.

If the proposals are accepted by Judge Amit Mehta, they could fundamentally alter the online search market and impact the rapidly evolving AI industry. The antitrust case, initiated during the Trump administration and sustained under President Biden, stands as the most forceful effort against a tech giant since the attempted breakup of Microsoft over two decades ago.

Google’s Chrome browser, the most widely used in the world, is crucial to the company's advertising model. By collecting user activity data, Google enhances its targeted advertising, which remains its primary revenue driver. Chrome also serves as a platform for pushing its AI initiatives, like Gemini, which Google envisions evolving into an advanced digital assistant.

Lee-Anne Mulholland, Google’s vice president of regulatory affairs, criticized the DOJ’s plans, stating that they represent a “radical agenda” and warning of potential negative impacts on consumers, developers, and American tech leadership. The Justice Department has declined to comment on the ongoing case.

Google shares dropped by up to 1.4% in premarket trading, reflecting investor concerns over the company’s future under regulatory pressure.

Chrome Divestiture and Broader Remedies

The DOJ's focus on Chrome reflects the browser’s centrality to Google’s market dominance. Chrome controls about 61% of the U.S. browser market, making it a pivotal entry point for Google’s search engine. However, officials suggest that a sale of Chrome could be deferred if other remedies sufficiently boost competition.

Beyond divestiture, the DOJ is expected to call for Google to decouple its Android operating system from bundled products like the search engine and Google Play app store. They will also push for increased transparency and control for advertisers, addressing long-standing complaints about Google’s ad practices.

Earlier DOJ filings outlined further remedies, including restrictions on exclusive contracts that have historically benefited Google. A forced spin-off would depend on identifying a buyer, but options like Amazon.com Inc. may be complicated by their own antitrust challenges.

Impact on Search and AI

Google’s integration of AI answers atop search results has also raised concerns. Critics argue that these AI-generated summaries reduce traffic to websites, harming publishers and advertisers. The DOJ is expected to advocate for Google to license its “click and query” data and syndicate its search results more openly, enabling competitors to improve their services rapidly.

Currently, Google imposes limitations on the use of its syndicated search results, such as restricting mobile access. Lifting these restrictions could give rival platforms a chance to strengthen their market positions and develop independent search indices.

The DOJ's comprehensive approach aims to dismantle Google’s hold over key technologies and promote a more competitive digital ecosystem.

By Tamilla Hasanova