Google proposes loosening agreements to address antitrust case, focusing on distribution
From Investing.com: 2024-12-20 22:05:36
Google has proposed loosening its agreements with Apple and other companies to address a U.S. ruling that it unlawfully dominates online search by setting Google as the default search engine on new devices. The proposal is narrower than the government’s bid to make Google sell its Chrome browser in the antitrust case.
Google urged U.S. District Judge Amit Mehta in Washington to proceed cautiously in deciding what actions the company must take to restore competition after being found to hold an illegal monopoly in online search and related advertising. The upcoming “remedies” phase should focus on distribution agreements with browser developers, mobile device manufacturers, and wireless carriers, Google says.
The judge found that Google’s agreements give it a significant advantage over rivals, with most devices in the U.S. coming pre-loaded with Google’s search engine. Exiting these agreements is difficult, especially for Android manufacturers who must install Google search to include Google’s Play Store on their devices, according to the judge.
Google’s proposal would make agreements non-exclusive and unbundle its Play Store from Chrome and search for Android phone manufacturers. Revenue sharing agreements, which pass a portion of ad revenue to device and software companies presenting Google as the default search engine, would not be ended under Google’s proposal.
Independent browser developers, including Mozilla, have emphasized the importance of these funds for their operations. Apple reportedly received an estimated $20 billion from its agreement with Google in 2022 alone. The proposal sets the stage for a trial in April where the U.S. Department of Justice and states will seek wide-ranging remedies, potentially including making Google sell off Chrome and its Android operating system.
Prosecutors also want Google to stop paying to be the default search engine, cease investments in search rivals and artificial intelligence products, and license its search results and technology to competitors. These proposals aim to foster innovation in online search and prevent Google from extending its dominance in search to AI, where competitors struggle to gather necessary data for improvement.
Read more at Investing.com: Google says it could loosen search deals in US antitrust case By Reuters