2024-11-21 18:42:00
US government files lawsuit
What the possible forced sale of Google Chrome means for users
The Ministry of Justice wants to break the dominant market position of the popular browser through legal action. What you need to know now.
The market value of Google Chrome is estimated at up to 20 billion dollars.
Photo: Mark Lennihan (AP Photo)
- The US government demands that Google give up its Chrome browser.
- Google is said to have abused exclusive contracts to secure its market power.
- Market experts estimate the value of Chrome at 15 to 20 billion dollars.
- Chrome has a global search market share of around 90 percent.
This will be uncomfortable for Google: The US government and some US states want to take legal action to force the company to sell its Chrome browser. A corresponding lawsuit was formally filed on Wednesday evening.
We answer the most important questions about this case, which is already considered one of the most important antitrust lawsuits against a US tech giant in recent years.
What are the allegations against Google?
The US company is said to have achieved a dominant market position with its web browser Google Chrome and is abusing it. Excerpt from the lawsuit filed by the US Department of Justice on behalf of the USA in a federal district court in Washington DC: “Google’s illegal behavior not only deprived the competition of important sales channels, but also sales partners, which prevented competitors from entering these markets in new and innovative ways.”
And what does this legalese mean in German?
Google has agreed exclusive contracts with other tech companies such as Apple and Samsung that make Chrome the default browser on their mobile devices. Competitors such as Microsoft with its own browser Edge have little chance of getting involved in the lucrative market of search queries and the associated advertisements.
What punitive measures should Google expect?
The US Department of Justice is demanding nothing less than that Google sell its browser. The Bloomberg business agency estimates the value of Chrome at 15 to 20 billion dollars. In addition, Google should have to share usage data and search results with competitors.
There is no verdict yet. Google is now asked to comment and submit its own suggestions. In addition, a federal district court is a first instance court. Google can still appeal an unfavorable ruling to the Federal Court of Appeal.
What’s true about the allegations?
At least Google’s monopoly position cannot be denied. Around 90 percent of all search queries worldwide occur via Google. Chrome has a market share of around 60 percent in the US and around two-thirds worldwide.
According to the statistics portal Statista, Chrome’s market share in Switzerland is 44.5 percent, which means the browser is also the leader here.
Why does this whole thing sound somehow familiar to me?
Because there was a similar case at the turn of the millennium. At that time, the antitrust lawsuit was directed against Microsoft. The Windows manufacturer is said to have abused its dominant position in operating systems to help its own web browser Explorer achieve a monopoly. The first instance saw this as proven and imposed a drastic penalty in 2000: Microsoft would be broken up.
The company successfully defended itself against this on appeal. Ultimately, an out-of-court settlement was reached between the US government and Microsoft.
Let’s say Google needs to sell Chrome. What would that mean for users?
Experts like independent cybersecurity consultant Lukasz Olejnik are concerned. “Chrome adopts web innovations very quickly,” he told the online portal “Business Insider,” pointing to Chrome’s security features as an example of Google’s innovation.
Without Google’s financial support, Chrome could be on its own, and it’s possible that progress on the web will slow and the ecosystem will be weakened, Olejnik added.
“The worst-case scenario is the deterioration of the security and privacy of billions of users and the increase in cybercrime on an unimaginable scale,” he warned.
Could Chrome even survive as an independent company?
Given the browser’s enormous market value, the question is who could even take over Chrome. Only buyers who have the necessary money would be eligible. It is considered rather unlikely that Meta, as the parent company of Facebook and Instagram, will take over the browser.
In a recent specialist article, researchers from California and the Netherlands suggest another possibility: Google should keep Chrome financially alive, but be excluded from contracts that make the search function the standard.
Another name that is mentioned is Open AI. The company operates the voice robot Chat-GPT, which is based on artificial intelligence. The renowned US tech blogger Ben Thompson considers the worldwide spread of Chrome to be useful enough “to boost the inevitable advertising business of Open AI”.
How does Google react?
“The Justice Department continues to pursue a radical agenda that goes far beyond the legal issues in this case,” said Google manager Lee-Anne Mulholland. She is responsible for regulatory matters.
When the government “puts its thumb on the scale in this way,” Mulholland said, it hurts “consumers, developers and American technology leadership at the very time it is needed most.”
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What are Google’s main arguments in defense of its market practices amid antitrust scrutiny?
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In response to ongoing antitrust scrutiny, Google has consistently defended its practices and the competitive nature of the digital marketplace. The company’s management has argued that market leadership results from consumer preference rather than unlawful practices. Additionally, they emphasize the benefits that their services provide to users, developers, and the technology industry as a whole.
