Google Proposes Loosening Agreements to Address Antitrust Ruling
Google’s Proposal
Google proposed on Friday a loosening of its agreements with Apple and others to set Google as the default search engine on new devices, in a bid to address a U.S. ruling that it unlawfully dominates online search.
Narrower Proposal than Government’s Push
The proposal is much narrower than the government’s push to make Google sell its Chrome browser, which Google called a drastic attempt to intervene in the search market.
Google’s Request for Caution
Google urged U.S. District Judge Amit Mehta in Washington to move cautiously in deciding what the company must do to restore competition, after his ruling that the company holds an illegal monopoly in online search and related advertising. Courts have cautioned against imposing antitrust remedies that chill innovation, Google said in court papers.
Focus on Distribution Agreements
While Google plans to appeal that ruling at the end of the case, it says the upcoming "remedies" phase should focus on its distribution agreements with browser developers, mobile device manufacturers, and wireless carriers.
Non-Exclusive Agreements
The judge found the agreements give Google a "major, largely unseen advantage over its rivals" and result in most devices in the U.S. coming pre-loaded with Google’s search engine. To fix that, Google could make them non-exclusive and, for Android phone manufacturers, unbundle its Play Store from Chrome and search, the company said in its proposal.
Revenue Sharing
Unlike the government’s proposal, Google’s would not end revenue sharing agreements, which pass a portion of ad revenue Google makes from search to the device and software companies that present it as the default search engine. Independent browser developers including Mozilla, which makes Firefox, have said the funds are crucial to their operations. Apple received an estimated $20 billion from its agreement with Google in 2022 alone.
DuckDuckGo’s Concerns
Kamyl Bazbaz, spokesperson for search engine competitor DuckDuckGo, said the proposal attempts to maintain the status quo.
Government’s Proposal
The government plans to call witnesses from OpenAI, AI search startup Perplexity, and Microsoft, according to court papers. Prosecutors also want Google to stop paying to be the default search engine, and cease investments in search rivals and query-based AI products, and license its search results and technology to rivals.
Aim to Spur Innovation
The proposals aim to spur innovation in online search, where Mehta found Google’s overwhelming market share keeps competitors from gathering the search data needed to improve their products, and prevent Google from extending its dominance in search to AI.
Conclusion
Google’s proposal sets the stage for a trial Mehta will hold in April, where the U.S. Department of Justice and a coalition of states will seek to show the need for wide-ranging remedies, including making Google sell off Chrome and potentially its Android mobile operating system.
FAQs
- What is Google’s proposal?
Google’s proposal is to loosen its agreements with Apple and others to set Google as the default search engine on new devices. - What is the government’s proposal?
The government’s proposal is to make Google sell its Chrome browser and potentially its Android mobile operating system. - What are the key differences between the two proposals?
The government’s proposal is broader and more drastic, while Google’s proposal is narrower and more focused on its distribution agreements. - What are the implications of Google’s proposal?
Google’s proposal aims to restore competition in the search market and prevent Google from extending its dominance in search to AI. - What are the concerns of search engine competitors?
Search engine competitors, such as DuckDuckGo, are concerned that Google’s proposal attempts to maintain the status quo and does not address the underlying issues of dominance.