Google’s parent company’s shares (GOOG.US) have entered the red, as the US Department of Justice (DOJ) demanded that the company sells Chrome, the world’s most popular browser, to end its contested search monopoly.
The court filing published on Wednesday follows the ruling in August, which found Google guilty of maintaining a monopoly in the search engine market and hindering competitors’ ability to develop their own products. In addition to selling Chrome, the ruling also demanded that Google halt its strategic contracts with companies like Apple and Samsung, which secure Chrome as the default search engine on their mobile devices.
The proposal has sparked outrage among the company’s officials, with Google’s president of global affairs, Kent Walker, claiming that it “goes miles beyond the Court’s decision.” The company further argues that the divestment would harm its product portfolio and disrupt integration within its ecosystem. It would also stall development and further investment in AI, as Google relies heavily on Chrome’s user data to train and refine its algorithms.
Google is expected to respond with its own proposed remedies by December 20, with a final decision likely to come in 2025. The Chrome browser could be valued at as much as $20 billion, should the judge overseeing the antitrust case consent to the DOJ’s proposal.
Alphabet’s shares have plummeted following the DOJ demand, giving up almost an entire month of gains. Source: xStation5
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