Google must sell Chrome to restore competition in online search, DOJ says

Jodi Godoy

(Reuters) – Alphabet’s Google must sell its Chrome browser, share data and search results with rivals and take other steps, including possibly selling Android, to end its monopoly on online search, prosecutors told a judge on Wednesday.

The measures unveiled by the Justice Department are part of a landmark case in Washington that could potentially change the way users search for information.

They will last for up to ten years and will be enforced through a court-appointed committee to correct what the judge overseeing the case found to be an illegal monopoly in search and related advertising in the US, where Google handles 90% of search queries.

“Google’s unlawful conduct has deprived competitors not only of important distribution channels, but also of distribution partners who might otherwise have provided competitors with access to those markets in new and innovative ways,” the Justice Department and state antitrust authorities said in a court filing Wednesday.

Their proposals include ending exclusivity agreements under which Google pays billions of dollars annually to Apple and other device providers to make their search engine the default on their tablets and smartphones.

In a statement Thursday, Google called the proposals “staggering.”

“The Justice Department’s approach will result in unprecedented government intervention that will harm American consumers, developers and small businesses—and threaten America’s global economic and technological leadership at a time when it is needed most,” said Alphabet Chief Legal Officer Kent Walker. .

Google shares traded down about 6% on Thursday.

U.S. District Judge Amit Mehta has set a trial on the proposals for April, although President-elect Donald Trump and the next antitrust chief could step in to change course.

TECHNICAL COMMITTEE

The proposals range widely, including banning Google from re-entering the browser market for five years and requiring Google to sell its Android mobile operating system if other measures fail to restore competition. The Justice Department also asked that Google be barred from buying or investing in search competitors, query-based artificial intelligence products or advertising technology.

Publishers and websites will also be given the opportunity to opt out of training on Google’s AI products.

A five-member technical committee appointed by the judge will ensure compliance as proposed by prosecutors. The committee, which will be paid for by Google, will have the power to demand documents, interview employees and dig into software code, the documents show.

Together, the measures are designed to break “a constant feedback loop that further entrenches Google” at the expense of additional users, data and advertising dollars, prosecutors said.

CHROME AND ANDROID

Chrome is the most widely used web browser in the world. It is the core of Google’s business, providing user information that helps the company target advertising more efficiently and profitably.

Prosecutors say Google used Chrome and Android to favor its own search engine over competitors.

Google said abandoning Chrome and Android, which are open source and free, would hurt companies that use them to develop their own products.

The proposals would bar Google from requiring devices running Android to include its search or artificial intelligence products.

Google will have the option to sell the software instead of complying. The Justice Department and state antitrust regulators would have to approve any potential buyers.

Google will have the opportunity to present its proposals in December.

DATA EXCHANGE

Under the proposals, Google would be required to license search results to competitors for a nominal price and share the data it collects from users with competitors for free. It will be prohibited from collecting any user data that it cannot share for privacy reasons.

Prosecutors developed the proposals after negotiations with companies that compete with Google, including the search engine DuckDuckGo.

“We think this is a really big deal that will lower barriers to competition,” said Kamil Bazbaz, head of public relations for DuckDuckGo.

DuckDuckGo accused Google of trying to circumvent European Union rules requiring data sharing. Google said it would not jeopardize user trust by providing sensitive data to competitors.

(Reporting by Jody Godoy; Additional reporting by Chris Sanders; Editing by Rod Nickel and Christopher Cushing)