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Home Tech Hub US government may demand Google to sell Chrome: Why and what it means for users, the whole story in 5 points

US government may demand Google to sell Chrome: Why and what it means for users, the whole story in 5 points

by PratapDarpan
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US government may demand Google to sell Chrome: Why and what it means for users, the whole story in 5 points

It is increasingly likely that the Justice Department – ​​a US government body – will demand that Google sell its Chrome division. The aim of this measure is to break Google’s alleged monopoly in the search market. If this happens, the impact on Chrome users could be significant.

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US government may demand Google to sell Chrome: Why and what it means for users, the whole story in 5 points
Google may have to sell Chrome browser (Photo: AI Generated)

A few months ago, a US court deemed Google a “monopoly” on search. After that order, the Justice Department, an organization of the US government, started working on some proposals. These proposals, which are expected to come tonight or tomorrow, are now becoming the subject of discussion in the initial leaks. And these leaks are not looking good for Google at all.

There are reports that the DoJ will ask the court that previously ruled against Google to order the breakup of the company. Specifically, it is going to target the Chrome division. So, what’s happening and how will it impact users? We break it down into 5 points:

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1- DoJ will demand separation of Chrome and Google

Reports in the US media last month revealed that the DoJ was working on proposals that would recommend breaking up Google. Now, there is a little more clarity on this. Latest reports suggest that the DoJ is going to ask the US court handling the case to separate Google and Chrome. Like Android, Chrome is an important part of Google’s advertising network. This allows the company to reach billions of people and the Chrome internet browser virtually rules the market. On the web, it has some competition from Mozilla Firefox and Microsoft Edge. But on mobile, where it is the default browser on Android, it has complete dominance.

If the leaked reports are accurate, it seems the DoJ believes that by separating Chrome from Google, and spinning Chrome off into a new tech company that will compete with Google, it will help the search giant Can address the allegations of monopoly made against it. A recent report says that if Google is indeed forced to sell Chrome, the Chrome division could become a company with a valuation of around $20 billion.

2- Google says that separating Chrome will be bad for users

Since August, when US District Judge Amit Mehta issued his ruling against Google, the company has vehemently denied the allegations of monopoly. It has also challenged that order and it could take months or even years for the appellate courts to upheld the order. But as the DoJ prepares its recommendations, Google has again come out strongly against the suggestion that it would be asked to sell Chrome.

A spokesperson for the company told US media, “The DOJ is pursuing a radical agenda that goes far beyond the legal issues in this case. The government putting its thumb on the scale in this way will hurt consumers, developers, and American tech leadership exactly when it is needed most.

It is interesting to note that the alleged DoJ proposals are coming around the same time that Google CEO Sundar Pichai spoke to Donald Trump, who has been elected as the next US President and will take office in January.

3- Does Google have a monopoly on search?

The answer, which has not yet been confirmed by America’s top courts, currently appears to be yes. And that yes is based on the decision that US District Judge Amit Mehta reached earlier this year in August. The case was to determine how much dominance Google had in the search market and consequently the web advertising market.

“The Court reaches the following conclusion: Google is a monopolist, and has acted as one to maintain its monopoly,” Judge Mehta wrote in his decision. Their decision was largely based on Google’s dominance of smartphones. On Google’s Android, which powers more than 90 percent of phones in India, Chrome is the default browser and Google is the default search engine. Even on the iPhone, Google reportedly pays Apple big bucks to keep Google as the default search engine.

“The default is extremely valuable real estate,” Judge Mehta said. “Certainly, Google recognizes that losing defaults would dramatically impact its bottom line. For example, Google has estimated that losing Safari defaults would lead to a significant decline in queries and billions of dollars in lost revenue. “

4- What’s next for Google and Chrome?

Google, apparently, would not want to sell Chrome, even if the DoJ actually recommended so. And as it stands, it is likely to have had a strong start because of the Microsoft case in the early 2000s. Microsoft also found itself on the wrong side of the law in a US court when a judge sided with the DOJ and ordered that the company be split into two. But the Windows-maker challenged the decision and won relief on appeal – but not a clean victory. This left the company intact, but because the monopoly findings were not overturned by the appeals court, it was back in another court battle. Microsoft and the DoJ eventually reached a settlement and Microsoft paid a hefty fine.

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There is a possibility that something similar will happen in the case of Google also. Even if the US court agrees with the DoJ’s proposals, Google will immediately challenge it. All that will take time.

However, a US court ruling – although challenged – is likely to force Google to make some changes. It’s possible that the company may automatically decide to downgrade Chrome and Google Search on Android phones to the same level where it no longer has the privileges of the platform’s owner. Or it could start letting users know they have other options besides Chrome. Google may also change the way Chrome operates and collects data from users, or the company may change the way it uses this data for its targeted advertising.

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5- If Google is forced to sell Chrome, what will be the impact on users?

Although the chances are slim, what would happen if the DoJ prevails and Google is actually forced to sell Chrome? Will this affect users? Definitely. But even more, it will impact Google on how it tracks web users and collects data for targeted advertising. And the changes can be both negative or positive for users. The new Chrome, now with new owners and competing with Google, may decide to double down on data collection and then share it with the highest bidder in the marketplace. Or the new owners may decide they would rather give users more privacy than collect individual data points. How this will actually work, we don’t know.

From a usage perspective, Chrome will remain the same in the short term. But gradually we can start seeing changes in this. And we’re not exactly sure whether it will change for the better or not. This is why Chrome is so popular and used by more than 80-90 percent of web users depending on the region. Chrome has about 90 percent market share in India. It is a fast and modern web browser with a great feature set. And that’s because it’s a Google product, a company where teams working on something like Chrome can have virtually unlimited resources. Will any other tech company – or any new tech company – be able to maintain Chrome like this year after year? only time will tell.

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