DOJ Proposes Google Spin-Off of Chrome to Combat Search Monopoly

Google Faces Antitrust Pressure: Key Divestment Measures Proposed by DOJ

The U.S. Department of Justice (DOJ) has proposed significant changes aimed at restoring competition in the online search market, targeting Google specifically. According to the DOJ’s recent filing in the DC District Court, the government is pushing for Google to divest its Chrome web browser, along with the potential for a spin-out of its Android business, to address its illegal monopoly.

DOJ's Proposed Measures Against Google

Filed late Wednesday, the DOJ's proposal outlines remedies following Judge Amit Mehta's recognition of Google’s monopoly in search engine services and advertising. Among the broad range of requirements, the government wants to:

• Restrict Google from entering certain agreements that could stifle competition.
• Break up parts of the company, specifically focusing on divesting the Chrome web browser.
• Keep the option of a potential spin-out of Google’s Android operating system on the table to ensure compliance with future regulations.

The Rationale Behind the Spin-Out

The DOJ views Chrome as a critical gateway for users accessing the web, thus making its divestiture essential for enhancing competition. Additionally, while a spin-out of Android is not directly mandated, the threat of such an action serves as leverage against Google, prompting compliance with the proposed remedies.

Further Requirements Proposed by the DOJ

In addition to the divestiture proposals, the DOJ seeks to:

• Prohibit Google from providing incentives to third parties, including phone manufacturers like Apple, to favor its search engine.
• Ban self-preferencing of Google Search across any owned platforms, such as YouTube.
• Mandate accessibility for rivals to Google’s search index at marginal costs.
• Syndicate Google’s search results and data for use by competitors.
• Allow websites to opt-out of Google’s AI-generated previews without fearing negative impacts on their search visibility.

Next Steps in the Legal Proceedings

Judge Mehta will now evaluate these proposals to determine suitable measures for restoring competition. A revised proposal from the DOJ is expected in early March, leading to a remedies trial scheduled for April, where arguments from both sides will be presented. This trial emerges amid a backdrop of a changing administration, which may influence the DOJ's approach to the case.

Conclusion

As the antitrust case unfolds, Google will need to navigate these proposed changes carefully to avoid severe ramifications for its business structure and operations.

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