A Quick Summary of the DOJ's latest motion against Google — Is Chrome Gone?

Monday, November 25, 2024

Last week, the DOJ asked US District Court Judge Amit P. Mehta to force Google to sell off Chrome, among other proposed remedies. This follows a landmark ruling in August 2024 in which the court found Google to be a monopolist in general search services and search text advertising.

Here’s a quick overview of what the DOJ is asking for in its latest motion against Google. You can read the full motion (Case 1:20-cv-03010-APM) here:

Key Proposed Remedies by the DOJ:

1. Structural Changes to Google:

   • Required divestiture of Chrome browser.

   • Potential divestiture of Android (either immediately or as a fallback if behavioral remedies fail).

   • Prohibition on Google owning interests in search rivals or related AI products.

2. Distribution and Agreements:

   • Ban on Google paying for default search placement (including to Apple)

   • Prohibition on exclusive agreements with publishers

   • New requirements for choice screens to let users select default search engines

3. Data and Competition: 

   • Required sharing of search index at marginal cost

   • Mandatory syndication of search results and ads

   • Sharing of user-side and advertising data with rivals

   • Improved transparency for advertisers

4. Oversight:

   • Establishment of a Technical Committee to monitor compliance

   • 10-year duration for most remedies

   • Anti-retaliation and anti-circumvention provisions

 Key Arguments for Why Remedies Are Needed:

1. Scale Advantages: Google's illegal conduct has created an unfair data advantage that must be addressed

2. Distribution Control: Google's ownership of key platforms (Chrome, Android) has "fortified its dominance"

3. Network Effects: The remedy must break the "perpetual feedback loop" that entrenches Google's position

4. Innovation: Current structure diminishes incentives for competitors to innovate and invest

Why does this matter?

• Google as a Search Monopoly: As of September 2024, Google dominates the global search engine market share with 90.48% of all search queries conducted across all platforms. In the United States, Google's market share is slightly lower at 88.01%.

• The Timing Isn’t Great for Google: A forced sale of Chrome couldn’t come at a more worse/pivotal time in the company’s history, as it tries to incorporate GPTs into its Search product and fend off upstarts like Perplexity.

• A New Competitive Era in Search: While it’s not totally clear that a forced Chrome divestiture would significantly weaken Google’s hold on the Search market, it could be the opening that rivals like Perplexity and Bing need to expand their own Search businesses, which would theoretically benefit consumers in the long run.

• The Markets Might Actually Want A Stand-Alone Chrome (And Android): If Google is actually forced to sell off Chrome to a buyer, existing GOOG shareholders might end up richer. Here’s the All-In Podcast chatting about this very concept in Episode 192.

I’ll continue to monitor the case and provide updates on what happens and why it matters.