This measure is a result of an antitrust ruling stating that Google has blocked competition by dominating the search market for a long time. The DOJ proposed five structural remedies to the court to restore substantial competition in the search sector.
The main focus is to separate and sell Google’s web browser ‘Chrome.’ Currently, Chrome accounts for 35% of all Google search traffic, serving as the main channel. The DOJ believes that through Chrome, Google is maintaining its dominance in the search market.
Google has set its search engine as the default through contracts with device manufacturers, telecommunications companies, and other browser firms, paying large sums to do so. In 2022 alone, it reportedly paid about $20 billion to Apple.
Such distribution contracts effectively block competitors from reaching users. Google created a structure where it only shares revenue if such conditions are met. The court viewed this structure as blocking nearly half of the entire search market.
The DOJ believes that Google’s monopoly structure in the search engine market cannot be dismantled merely by changing contract terms. Therefore, in addition to the sale of Chrome, it demanded the cessation of default search engine agreements, the sharing of search data with competitors, enhanced advertising transparency, and the establishment of a surveillance system.
If market competition does not revive within five years despite these measures, a backup plan includes separating the Android operating system from Google and converting it into an independent entity like ‘AndroidCo.’
Google strongly opposes the DOJ’s proposal. CEO Sundar Pichai and other executives are attending hearings to express their stance, arguing that this action may exceed the court’s judgment scope and could negatively impact U.S. consumers, the economy, and national security. They also plan to appeal the antitrust ruling issued in August 2024.
The hearings are set to continue until May 9. The court’s future decision is expected to attract attention regarding its impact on Google’s business operations.