Jack Silva | norphoto Getty Images

Alphabet Shares fell 4 percent on Thursday, after the Justice Department demanded Google remove its Chrome browser as a remedy in an antitrust case.

According to the DOJ, the proposed breakup will take place. Filing Wednesday night“Permanently block Google’s control over this key search access point and allow rival search engines to gain access to the browser that is the gateway to the Internet for many users.”

It’s the latest development in a years-long two-way antitrust battle against Google. In August, a federal judge ruled that the company constituted an illegal monopoly in both search and text advertising, violating Section 2 of the Sherman Act. The DOJ request represents the agency’s most aggressive effort to break up the tech company since the antitrust lawsuit against Microsoft, which reached a settlement in 2001.

Chrome, which was launched by Google in 2008, provides data to the search giant which it then uses to target ads. The DOJ said In the filing That forcing the company to get rid of Chrome would create a more level playing field for search competitors.

“To remedy these damages, (the preliminary proposed final decision) requires Google to remove Chrome, which would permanently cease Google’s control over this key search access point and give rival search engines access to the browser.” will allow a gateway for many users to the Internet,” the 23-page filing reads.

Additionally, the DOJ stated that Google should be prevented from entering into external agreements with third parties e.g apple And Samsung. The department also said Google should be prohibited from prioritizing its search service over its other products.

The remedies must prevent Google from “eliminating emerging competitive threats through acquisitions, minority investments, or partnerships,” the DOJ said, adding that they must last for 10 years.

“The proposed remedies are designed to end Google’s unlawful practices and open the market to competitors and new entrants,” the filing said.

Search advertising generated $49.4 billion in revenue in Alphabet’s third quarter, representing three-quarters of total ad sales in the period.

In addition to requiring Google to sell Chrome, the DOJ said that forcing the search company to divest its Android mobile operating system would help restore competition, “but the plaintiffs acknowledge that such distribution may raise significant objections from Google or other market participants.”

Instead, the DOJ suggested that other remedies “must be sufficient to eliminate Google’s ability to exercise its control over the Android ecosystem in favor of its general search services” and if they “ultimately meet these critical circumstances.” Failing to meet the high standards for meaningful relief, the Court may require a reversal of the Android divestiture proposal.

In one Blog post On Thursday, Kent Walker, Google’s legal chief, called the DOJ’s proposal an “overbroad proposal” that would affect privacy and artificial intelligence investments at a critical time.

Walker added that this is “miles away from a court decision” and “will break a range of Google products — even beyond search.”

Google has said it will appeal the antitrust ruling, which would rule out any final remedy.

Look: Traders Discuss Regulatory Headwinds in Big Tech Space



Source link