The likelihood that the US government agency, the Department of Justice, would order Google to sell its Chrome division is growing. The goal of the action is to end Google’s purported monopoly in the search market. It might have a big effect on Chrome users if it occurs.
A US court declared Google to be a “monopoly” in search a few months ago. The US government agency, the Department of Justice, began developing several options after receiving that directive. These plans are now generating a lot of excitement in early leaks and are anticipated to come tonight or tomorrow. Additionally, Google’s position about the leaks is not good.
According to rumours, the DoJ would request that the court, which previously decided against Google, order the company’s dissolution. It will specifically target the Chrome division. What is happening, then, and how will it affect users? We divide it into five points:
1- DoJ to seek Chrome and Google separation
According to allegations in the US media last month, the DoJ was developing ideas that would suggest Google be broken up. There’s a little more clarity now. According to the most recent sources, the Department of Justice will request that the US court handling the case split Google and Chrome. Chrome is a crucial component of Google’s advertising network, much like Android. The Chrome web browser essentially controls the market, and it enables the business to reach billions of consumers. It does face some competition on the Web from Microsoft Edge and Mozilla Firefox. However, it has complete dominance on mobile devices, where it is the default browser on Android.
If the stories that have been leaked are correct, it appears that the Department of Justice feels that it can resolve the monopolistic charges against the search giant by splitting Chrome from Google and transforming Chrome into a new tech business that will compete with Google. According to a recent report, Google’s Chrome division might be valued at about $20 billion if it is forced to sell the browser.
2- Google says Chrome separation would be bad for users
Google has strongly refuted the monopoly claims ever since US District Judge Amit Mehta’s ruling against the business was handed in August. It has also contested that order, and it may take months or even years for the appellate courts to uphold it, if at all. However, Google has once again stated that it will not be asked to sell Chrome while the DoJ prepares its recommendations.
“The DOJ continues to push a radical agenda that goes far beyond the legal issues in this case,” a business spokeswoman told the US media. In these respects, the government’s thumb on the scale would hurt inventors, consumers, and American technology leadership just when it’s most needed.
It’s interesting to note that the alleged DoJ suggestions coincide with Sundar Pichai, the CEO of Google, speaking with Donald Trump, the newly elected US president who will take office in January.
3- Is Google a Search monopoly?
Although the US’s highest courts have not yet confirmed it, the answer appears to be yes for the time being. And that answer is predicated on the decision rendered earlier this year in August by US District Judge Amit Mehta. The goal of the lawsuit was to ascertain Google’s level of dominance in the search industry and, by extension, in the market for online advertisements.
“The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta stated in his ruling. His decision was mostly influenced by Google’s hegemony in the smartphone market. Google is the default search engine and Chrome is the default browser on Google’s Android platform, which powers more than 90% of phones in India. According to reports, Google pays Apple a significant amount of money to maintain Google as the default search engine on the iPhone as well.
“The default is extremely valuable real estate,” Judge Mehta stated. “Google is aware that losing defaults would have a significant negative effect on its financial results. For example, Google estimates that removing Safari’s default setting will lead to a sharp decline in search volume and billions of dollars in lost income.
4- What happens next for Google and Chrome?
It goes without saying that even if the DoJ were to make such a recommendation, Google would not want to sell Chrome. Additionally, it will probably get off to a strong start due to the Microsoft case in the early 2000s. When a judge in a US court ruled with the Department of Justice and mandated that the firm be divided in two, Microsoft also found itself in legal hot water. However, the Windows manufacturer appealed the decision and gained some relief, though not a landslide victory. It preserved the business, but it went back to court because the appeals court did not reverse the monopoly findings. Microsoft eventually paid large fines as part of a settlement with the DoJ.
It’s likely that Google will have a similar situation. Google will contest the DoJ’s proposals right away, even if the US court accepts them. That will all require time. Even though it is being contested, a US court ruling is probably going to compel Google to alter some of its operations. On its own, the corporation can choose to downgrade Google Search and Chrome on Android phones to the point where it loses its owner-of-the-platform rights. Alternatively, it might begin informing users that Chrome is not their only option. Additionally, Google may alter how Chrome functions and gathers user data, or it may alter how the business uses this information for its targeted advertising.
5- What will be the impact on users if Google is forced to sell Chrome
What would happen if the DoJ wins and Google is actually compelled to sell Chrome, even though the odds are slim? Will users be affected? Of course. More significantly, though, it will affect Google’s user tracking and data collection for targeted advertising. Additionally, consumers may experience both positive and bad effects from the adjustments. Now that it has new owners and is up against Google, Chrome might opt to up its data collection efforts before giving it to the highest bidder. Alternatively, the new owners can feel that providing consumers with greater privacy is preferable than gathering various data points. We are unsure of the precise course of events.
From the perspective of usage, Chrome would not change in the near future. However, we might begin to see a change over time. Furthermore, we are unsure if it will improve or not. There is a reason Chrome is so widely used; depending on the location, 80–90% of web users use it. Chrome’s market share in India is over 90%. It has an excellent feature set and is a modern, speedy web browser. This is the case since it is a product of Google, a business that provides teams working on projects similar to Chrome with essentially limitless resources. Will Chrome be able to be maintained in the same manner next year by another tech business, or by a new tech company?