In an effort to address a U.S. court ruling, Google has proposed adjustments to its agreements with companies like Apple.
The tech giant aims to avoid harsher penalties, including a potential forced sale of its Chrome browser.
Google’s proposal sets the stage for a trial in April.
In an effort to address a U.S. court ruling that declared the tech giant’s dominance in online search illegal, Google has proposed adjustments to its agreements with companies like Apple. The tech giant aims to avoid harsher penalties, including a potential forced sale of its Chrome browser, which the government had suggested in a broader push for antitrust remedies.
The proposal, which Google presented, is a more limited response than the government’s push for major changes in its business structure. While the U.S. District Judge Amit Mehta ruled that Google holds an illegal monopoly in online search and related advertising, Google argued that drastic actions, such as the sale of its Chrome browser, would negatively impact innovation.
Google urged Judge Mehta to approach the upcoming remedies phase with caution, stressing that the fast-paced development of artificial intelligence (AI) is reshaping how people use online services, including search engines.
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While Google plans to appeal the ruling, it has suggested that the focus of the remedies should be on its distribution agreements with browser developers, mobile device manufacturers, and wireless carriers, reports Reuters.
These deals, according to the judge, give the tech giant a significant advantage, especially in the U.S., where most devices come pre-loaded with its search engine. The agreements are tough to exit, particularly for Android manufacturers, who must include Google’s search engine in order to use the Google Play Store.
To address this, Google proposed making these agreements non-exclusive and unbundling the Play Store from its search and Chrome browser. Additionally, Google would allow browser developers who choose its search engine as the default to revisit their decision annually.
Importantly, Google’s proposal does not call for an end to the revenue-sharing agreements with companies like Apple, which reportedly earned $20 billion in 2022 from its partnership with Google. Critics, such as DuckDuckGo spokesperson Kamyl Bazbaz, argue that this approach fails to restore competition in the search market. “Once a court finds a violation of competition laws, the remedy must not only stop the illegal conduct and prevent its recurrence, but restore competition in the affected markets,” he said.
Google’s proposal sets the stage for a trial in April, where the U.S. Department of Justice will argue for more sweeping remedies, including forcing Google to sell Chrome and potentially Android. The trial will include testimony from OpenAI, Perplexity, and Microsoft.
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Ayushi Jain
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