WASHINGTON, Nov 18 (Reuters) - The U.S. Department of Justice will ask a judge to force Alphabet's Google (GOOGL.O), opens new tab to sell off its Chrome internet browser, Bloomberg News reported on Monday, citing people familiar with the plans.
The DOJ will also ask the judge, who ruled in August that Google illegally monopolized the search market, to require measures related to artificial intelligence and its Android smartphone operating system, the report said.
Google controls how people view the internet and what ads they see in part through its Chrome browser, which typically uses Google search, gathers information important to Google's ad business, and is estimated to have about two-thirds of the global browser market.
The DOJ declined to comment. Google, in a statement from Lee-Anne Mulholland, vice president, Google Regulatory Affairs, said the DOJ is pushing a "radical agenda that goes far beyond the legal issues in this case," and would harm consumers.
The move would be one of the most aggressive attempts by the Biden administration to curb what it alleges are Big Tech monopolies.
Ultimately, however, the re-election of Donald Trump to the presidency could have the greatest impact over the case.
Two months before the election, Trump claimed he would prosecute Google for what he perceives as bias against him. But a month later, Trump questioned whether breaking up the company was a good idea.
The company plans to appeal once U.S. District Judge Amit Mehta makes a final ruling, which he is likely to do by August 2025. Mehta has scheduled a trial on the remedy proposals for April.
Prosecutors had floated a range of potential remedies in the case, from ending exclusive agreements where Google pays billions of dollars annually to Apple Inc (AAPL.O) and other companies to remain the default search engine on tablets and smart phones, all the way to divesting parts of its business, such as Chrome and Android operating system.
Because Chrome's market share is so high, it is an important revenue driver for Google. At the same time, when users sign into Chrome with a Google account, Google can offer more targeted search ads.
Google maintains its search engine has won users with its quality, adding that it faces robust competition from Amazon (AMZN.O) and other sites and users can choose other search engines as their default.
The government has the option to decide whether a Chrome sale is necessary at a later date if some of the other aspects of the remedy create a more competitive market, the Bloomberg report said.
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Agree. One place to start would be that the company that sells ads (Google Ads) should not be the same as the ones that buy ads (Search, YouTube, etc.). It creates a situation where one company has both a monopoly and monopsony, which is just far too much market power.
Yeah, they're currently playing both sides of the digital ad market place, and that's definitely where you should start when breaking up Alphabet.