November 19, 2024, 11:12 am | Read time: 3 minutes
Google is one of the largest and most powerful corporations in the world. This is mainly due to its supremacy in the search engine sector. However, a current lawsuit could change that.
Only a few companies have managed to make their product synonymous with something – Google is one of them. Whether it’s the specs of the new PlayStation, the recipe for the hyped Dubai chocolate, the latest sports results, or tomorrow’s weather, all this information is quickly “googled.” According to current findings, Google controls around 90 percent of the search engine market. An important component of this is Google’s Chrome browser. The browser often provides access to the search engine, for example, on Android smartphones. Back in August, a judge ruled that Google had an absolute monopoly position that was illegal under competition law – TECHBOOK reported. The ruling could have far-reaching consequences.
Google is accused of monopoly position
There is the option of follow-up proceedings; one possible outcome would be the break-up of Alphabet, the company behind Google. In addition to the search engine, the Google Group also owns the Android operating system, the YouTube video search engine, the Maps map service, Pixel smartphones, the Google Play Store, and the Google Ads business. Other companies under the Alphabet umbrella include the smart home manufacturer Nest and the biotechnology company Calico.
However, the proceedings are specifically about Google’s supremacy in the online search sector, which the company has repeatedly defended with payments worth billions. This was one of the central arguments put forward by District Judge Amit Mehta in August. One example cited was that Google had paid more than 26 billion US dollars to manufacturers of electronic devices in 2021 to pre-install its search engine on many products as standard. Alphabet announced that it would appeal.
US judiciary demands Chrome spin-off from Google
The proceedings have also been dubbed the “trial of the decade,” as it is the first time since the failed trial against Microsoft over 20 years ago that the US has accused a company of creating an illegal monopoly. As reported by Bloomberg and others, the US Department of Justice is actively working to break up Alphabet. At the same time, the ministry wants to ask the judge to consider measures regarding the connection between artificial intelligence and the Android mobile OS.
Google described the ministry’s action to the news agency Reuters as a “radical agenda that goes far beyond the legal issues in this case.” At the same time, the company warns of harmful consequences for consumers.
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Possible consequences
But what would be the concrete consequences of a Google Chrome spin-off? As always, that depends on the details and, above all, on who takes over the business in the end. Companies with an interest and the corresponding purchasing power, such as Amazon, are themselves currently being investigated under antitrust law – as Bloomberg also points out.
Another demand from the ministry is that Google must license its search results and data. At the same time, Google is to provide more extensive options for websites that do not make their content available for AI training.
While the consequences for consumers are not yet foreseeable, it is clear that Google would be hit hard by the potential loss of Chrome. As reported by Handelsbatt, for example, around two-thirds of the company’s revenue comes from advertisements that appear in search results. The final verdict is expected in August 2025.