Google Chrome Generating Attention. A Lot of Attention
November 26, 2024
The US Department of Justice (DOJ) took the first step in breaking up Google’s Big Tech monopoly by forcing Alphabet Inc. to sell its popular Web browser, Chrome. Alphabet Inc. is responding like all past companies who had their market dominance broken up by the government: it is throwing a major temper tantrum. The BBC reports on Google’s meltdown in: “Google Reacts Angrily To Report It Will Have To Sell Chrome.”
Google claimed it had a right to retain its monopoly on search because it was the best in the world. Not so, the Judge Amit Mehta of the DOJ replied, especially since the word “Google” is now a verb and there’s no fair competition. Instead of facing their fate with dignity, Google is saying it will harm consumers and businesses if it’s forced to sell Chrome. While that could be interpreted as a threat, Google probably meant it to sound like it was worried about its users. We think it sounds like a disguised threat.
Google doesn’t want to lose its 90% hold on the global search market augmented by Chrome as the world’s most used Web browser at 64.61%. Chrome is the default browser on many PCs and mobile devices. Judge Mehta wants to end that dominance:
Judge Mehta said in his ruling in August that the default search engine was "extremely valuable real estate" for Google.
‘Even if a new entrant were positioned from a quality standpoint to bid for the default when an agreement expires, such a firm could compete only if it were prepared to pay partners upwards of billions of dollars in revenue share’ he wrote.
The DOJ had been expected to provide its final proposed remedies to the court by Wednesday.
It said in an October filing documenting initial proposals it would be considering seeking a break-up of Google.
Potential remedies "that would prevent Google from using products such as Chrome, Play [its app store], and Android to advantage Google search and Google search-related products" were among its considerations, it said then.”
Google replied:
“In response to the DOJ’s filing in October, Google said "splitting off" parts of its business like Chrome or Android would "break them".
‘Breaking them off would change their business models, raise the cost of devices, and undermine Android and Google Play in their robust competition with Apple’s iPhone and App Store,’ the company said.
It also said it would make it harder to keep Chrome secure.”
Those sounds like inflated arguments, especially when the only thing that will break is Google’s record profits. Investors will also be harmed, but that’s why it’s good to have a diverse portfolio. Wah Wah!
Whitney Grace, November 26, 2024
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