Government Seeks to Break Up Tech Giant by Requiring Transfer of Key Software
The U.S. Department of Justice is pushing for Google to relinquish control of its dominant Chrome browser. This demand is part of a proposal filed on Friday by the Justice Department’s antitrust division, signed by acting assistant attorney general Omeed Assefi, as part of an ongoing legal battle initiated in 2020.
The Justice Department alleges that Google leveraged the Chrome browser to establish a monopoly in online search and advertising. The tech giant is accused of paying third parties to use Chrome as their default search engine, a practice that the Justice Department and more than 45 states, who are plaintiffs in the case, argue has harmed competition in the marketplace.
In the latest filing, the plaintiffs stated, “Google’s conduct poses a significant threat to market freedom and fair competition in our economy.” These proceedings, along with a filing made by Google on the same day, set the stage for an upcoming hearing scheduled for next month, with a final ruling expected from U.S. District Judge Amit Mehta in August, according to reports by Bloomberg.
Judge Mehta previously declared Google a monopolist in an opinion filed in August 2024, stating that the tech giant had utilized distribution agreements, such as payments to Apple and Samsung to make Chrome the default search engine on devices, to solidify its dominance in search and online advertising markets.
The judge emphasized that Google’s contractual agreements had anticompetitive effects and enabled the company to rake in monopoly profits. Notably, in 2021 alone, Google reportedly paid over $26 billion to secure its search engine as the default option on various devices, a move deemed by Mehta as stifling competition and reinforcing Google’s market dominance.
The ongoing legal battle has drawn attention from antitrust enforcers, including the U.S. Department of Justice and numerous state Attorneys General, who are closely monitoring Google’s actions.
If compelled to divest Google Chrome, the estimated cost could reach up to $20 billion, potentially dealing a significant blow to the tech giant. The Justice Department is urging a federal judge to mandate Google to offload its Chrome browser as part of the antitrust case.
However, Google has proposed an alternative approach, suggesting that it could comply with the court’s decision by revising its licensing agreements with partners like Apple to eliminate exclusive conditions on Chrome, Google Search, and other applications.
In a statement, Lee-Anne Mulholland, vice president of regulatory affairs for Google and Alphabet, expressed concerns about the Justice Department’s proposal, arguing that it goes beyond the scope of the court’s decision and could negatively impact American consumers and technological innovation.
Notably, the Justice Department has withdrawn a previous recommendation for Google to divest its investments in artificial intelligence, focusing instead on the divestiture of the Chrome browser as a key measure to address antitrust concerns.
Google has chosen to mandate that officials be notified before making any future investments in AI. The antitrust lawsuit against Google, which began during President Donald Trump’s first term, was a significant case in taking on Big Tech. The case is now being pursued by the Justice Department under the Biden administration, which was initially started during the Trump administration. While Google is expected to challenge the judge’s final ruling, the Justice Department may not necessarily aim to implement all the solutions proposed in its final submission. This approach could be seen as an initial stance for negotiation, according to Paul Swanson, a technology and antitrust expert at Holland & Hart LLP. The current administration wants to demonstrate toughness on tech companies while supporting the growth of America’s tech industry. For more updates, follow Mike Snider on Threads, Bluesky, and X.
