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Google faces pressure to sell Chrome browser amid antitrust scrutiny

November 19, 2024

Google may be forced to sell its Chrome browser as US antitrust officials intensify scrutiny, potentially reshaping the tech giant's operations and impacting its advertising revenue.

Google may be compelled to divest its Chrome internet browser after a federal judge ruled that the company holds an “illegal monopoly” over online search.

The US Department of Justice (DoJ) is reportedly planning to ask Judge Amit P. Mehta to order Alphabet’s Google to sell Chrome, according to Bloomberg.

Should the judge accept this recommendation, it would mark one of the most significant antitrust actions against a major technology firm by the US government. In August, Judge Mehta found that Google, which controls about 90% of global internet searches, had abused its dominant position to stifle competition. A trial to discuss potential remedies is scheduled for April.

Chrome is integral to Google’s ecosystem, influencing how users access the internet and view advertisements. The browser defaults to Google Search and collects user data, enabling the company to offer highly targeted advertising—a substantial revenue source. News of a possible forced sale caused Alphabet’s shares to dip by $1.46, or 0.8%, to $175.34 in after-hours trading in New York.

Antitrust officials are also expected to recommend that Google provide websites with more options to prevent their content from being used by the company’s artificial intelligence products. Currently, Google features AI-generated answers, labelled “AI Overviews,” at the top of its search results. The DoJ may also require Google to license its search results and data.

A spokesperson for the DoJ declined to comment. Lee-Anne Mulholland, vice-president of Google Regulatory Affairs, criticised the DoJ’s approach, stating that it is pursuing a “radical agenda that goes far beyond the legal issues in this case” and would harm consumers.

Google intends to appeal once Judge Mehta delivers a final ruling, expected by August 2025. Other potential remedies include ending exclusive agreements where Google pays billions annually to companies like Apple to remain the default search engine on devices. The judge might also consider requiring Google to divest other parts of its business, such as its Android operating system.