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US antitrust regulators propose dismantling Google’s Chrome, Android dominance

US antitrust regulators propose dismantling Google’s Chrome, Android dominance A large Android logo head is displayed at Alphabet's Google Android plaza booth during the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 5, 2023. (AFP Photo)
By Newsroom
Nov 21, 2024 8:17 AM

The U.S. Department of Justice (DOJ) has intensified its antitrust crackdown on Google, requesting a federal judge to mandate the sale of its Chrome browser and potentially its Android mobile operating system. The move, outlined in a court filing late Wednesday, marks a pivotal shift in government oversight of major tech companies.

The DOJ argued that dismantling Google is necessary to curb the company’s dominance in search and mobile operating systems. It also called for prohibiting deals that make Google the default search engine on smartphones and preventing the company from leveraging its control of Android to stifle competition.

“If these remedies fail to address Google’s monopolistic practices, selling Android may become unavoidable,” the filing stated.

This push comes after Judge Amit Mehta ruled in August that Google operates as a monopoly, citing its extensive agreements with smartphone manufacturers, including Apple. These arrangements, which involve substantial payments to secure Google as the default search engine, were deemed instrumental in bolstering the company’s dominance.

The court determined Google controlled 90% of the U.S. online search market in 2020, with its share climbing to 95% on mobile devices. These figures underscore Google’s unparalleled access to user data, which has fueled its expansion into services like Chrome, Maps, and Android.

The DOJ’s call for a breakup signals a stark departure from decades of minimal intervention in the tech industry. The last significant effort to dismantle a tech giant—the attempted breakup of Microsoft in the late 1990s—ended with a settlement that allowed the company to remain intact.

Google, meanwhile, has dismissed the notion of a breakup as “radical.” Adam Kovacevich, head of the industry group Chamber of Progress, described the government’s proposals as “fantastical” and legally unsound. He urged regulators to pursue more targeted solutions.

Google is set to respond to the DOJ’s recommendations next month, with both sides presenting arguments at a hearing in April before Judge Mehta. Regardless of the outcome, the case is expected to drag on for years, potentially culminating in a Supreme Court decision.

The future of the case could hinge on the incoming Trump administration, which will oversee the DOJ starting in January. While President-elect Trump has oscillated between criticizing Google for alleged anti-conservative bias and opposing extreme measures like forced breakups, his administration could alter the DOJ’s approach.

Options range from continuing the case to negotiating a settlement with Google or even dropping the lawsuit altogether. Such a shift would significantly impact the broader antitrust agenda targeting major tech companies, including ongoing cases against Amazon, Meta, and Apple.

As the antitrust landscape evolves, the DOJ’s case against Google could set a precedent for how the U.S. regulates tech giants in the coming years, reshaping the industry and its relationship with federal oversight.

Last Updated:  Nov 21, 2024 8:26 AM