The U.S. Department of Justice (DOJ) has demanded that Alphabet Inc.'s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google divest its Chrome browser to dismantle its monopoly on online search. This move is part of broader efforts to restore competition in the search market.
What Happened: Prosecutors have demanded that Google divest its Chrome browser and share search data with competitors to dismantle its monopoly on online search. These actions were proposed in a court filing on Wednesday.
The Department of Justice (DOJ) and state antitrust enforcers suggested that Google must also consider selling its Android operating system if other measures fail. The proposals aim to regulate Google for up to 10 years through a committee appointed by a federal court in Washington.
"Google's unlawful behavior 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 said in a statement.
The DOJ's filing expands on previous suggestions to end Google's monopoly in the U.S., where it controls 90% of searches. The proposals include ending exclusive agreements with companies like Apple Inc. (NASDAQ:AAPL) that make Google the default search engine on devices.
Google has criticized these proposals as extreme, arguing they would harm U.S. consumers and businesses. A trial on these proposals is scheduled for April, but changes could occur with the incoming administration.
Prosecutors also recommend barring Google from re-entering the browser market for five years and from acquiring search or AI competitors. A technical committee would enforce compliance, with Google funding its operations.
Why It Matters: The DOJ's latest move follows an August ruling that found Google guilty of illegally monopolizing the search market. The potential divestiture of Chrome could significantly impact Google's business model, which heavily relies on its dominance in the search market.
Perplexity AI CEO Aravind Srinivas has even speculated about acquiring the Chrome browser, suggesting its potential value could reach $20 billion if a court-ordered sale occurs. This highlights the broader implications of the DOJ's actions, which could reshape the competitive landscape in the tech industry.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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