Experts believe that these proposals may face legal challenges.
According to the Zhito finance APP, the usa antitrust regulators have demanded that google (GOOGL.US) divest its Chrome browser and proposed other measures to limit the company's dominance in the search engine market, but experts believe that these proposals may face legal challenges as the remedies are too extreme.
In August of this year, google was found to illegally monopolize the search market. The usa department of justice prosecutors proposed to the judge on Wednesday that google must sell its Chrome browser, share data and search results with competitors, and possibly sell its android smart phone software.
These proposals are part of a milestone case aimed at reshaping the way users find information. However, experts indicate that the incoming trump administration may alter this effort, and legal lawsuits could last for years.
Divesting google faces numerous challenges.
Kevin Walkush of Jensen Investment Management stated, "I feel that this requirement is a bit too high." Jensen Investment Management holds google stocks and is skeptical about the Chrome divestiture plan.
In the early 21st century, the usa department of justice accused microsoft (MSFT.US) of illegally monopolizing the web browser market and demanded that microsoft be broken up. The ruling was overturned by the appeals court, and microsoft and the usa department of justice eventually reached a settlement.
Walkush predicts that this case will take years to conclude as Google appeals. "The wheels of justice don't turn quickly," he stated.
Google claims that the actions of the USA Department of Justice are an unprecedented act of government overreach that will harm American consumers, developers, and small businesses.
The case may also face challenges from Trump.
While Google's search litigation began during Trump's first term, Trump stated in October that he might not break up Google as it could harm the USA technology industry.
Chrome is the most widely used web browser and a pillar of Google's business, providing valuable user data and aiding in precise ad targeting. Google's total revenue for the most recent quarter was $88.3 billion, with more than half coming from search ad business.
It is estimated that Chrome holds two-thirds of the global browser market share, but its value as a standalone browser has sharply declined.
Megan Gray, former chief legal counsel for search engine competitor DuckDuckGO and a former lawyer at the Federal Trade Commission, stated: "Chrome is valuable to Google because Google uses it to bolster its ad and search businesses. Without those, Chrome is just a data broker."
Critics argue that a forced sale won't address several key issues raised in the USA Department of Justice lawsuit, including search monopolization.
Gus Hurwitz, a senior researcher and academic director at the University of Pennsylvania's Carey Law School, stated, "The remedies proposed by the Department of Justice will face tremendous resistance," because Chrome can run search engines other than Google. "The courts want any remedies to be causally related to potential antitrust issues. Divesting Chrome absolutely cannot solve this problem."
Other restrictive measures are "too severe."
The Department of Justice proposed to completely ban Google from giving preferential treatment to its search engine by providing incentives. This includes Google's partnership with apple (AAPL.US), where Google pays Apple billions of dollars each year to make Google Search the default search engine on Apple smart phones.
Evercore analysts described the proposed restrictions as "too severe."
Hurwitz from the University of Pennsylvania stated that, given the popularity of Google Search, even without any agreements or payments, Apple might continue to use Google as the default search engine.
The Department of Justice also requested that Google license search results at a nominal cost and freely share its collected user data with competitors.
D.A. Davidson analyst Gil Luria stated that it is difficult to determine the impact of Google opening search data until the terms are more clearly defined. The Center for Journalism & Liberty indicated that licensing Google's search data to news publishers would have a "transformational" impact, as it would help publishers better understand their audience.
As of the time of publication, Google was nearly down 1% in pre-market trading. The stock fell 5% on Thursday.