The US Department of Justice is taking action against the tech giant Google. The end result could be the sale of the Chrome internet browser. But why?
The US Department of Justice has had the big American tech companies in its sights for several years now. They are too powerful for them and often control too many applications that a large part of humanity uses in their daily lives.
That could now change. According to media reports, the US Department of Justice is pushing for Google to sell its Chrome internet browser. The ministry will ask the judge in the relevant court proceedings to take such a step, writes the Bloomberg agency . If this actually happens, it would be a huge blow for the company and would probably also have an impact on the other tech giants in Silicon Valley. According to a document seen by the Wall Street Journal , Google could alternatively have to sell its Android operating system. Chrome or Android would therefore have to go if Google were to continue to operate its business model as before.
Approximately 90% of the market for online searches is controlled by Google. Furthermore, the Android operating system powers almost all kinds of mobile devices. According to the court, the company paid around $26.3 billion to electronic device manufacturers in 2021 so that Google search would be set as standard in the Internet browsers of these devices. According to estimates, Alphabet is thus securing the lion’s share of the global $200 billion market for online advertising in search engines.
Illegal monopoly”
At the beginning of August, District Judge Amit Mehta ruled in an antitrust case about Alphabet’s market power that Google had an illegal monopoly in online searches and the associated advertising, which it was defending with billions in payments. With the ruling, Mehta paved the way for a follow-up case that could end with Alphabet being broken up. Alphabet has stated that it is going to challenge the decision. The case is considered the “case of the decade” because it is the first time that the USA has accused a company of creating an illegal monopoly.
Owning the world’s most popular web browser is crucial to Google’s advertising business. It allows the company to see the activity of logged-in users and use that data to more effectively target advertising, which makes up the bulk of its revenue. Google has also used Chrome to attract users to its Gemini AI model.
Google accuses the Justice Department of “continuing to pursue a radical agenda that goes far beyond the legal issues in the case.” “If the government exerts influence in this way, it would harm consumers, developers and America’s technological leadership at a time when it is needed most,” said Lee-Anne Mulholland, vice president of regulatory affairs.
Wanted to be more aggressive
The Justice Department’s antitrust division may also be preparing to challenge HP ‘s $14 billion offer to Juniper Networks, and both companies are currently working to obtain the “necessary approvals” for such a deal.