Google says it could relax search agreements in US antitrust case

Alphabet Google on Friday (Dec. 20) proposed relaxing its deals with Apple and others to set Google as the default search engine on new devices to address a U.S. ruling that it illegally dominates online searches.

The proposal is much narrower than the government’s attempt to force Google to sell its Chrome browser in the antitrust case over online search.

Google urged U.S. District Judge Amit Mehta in Washington to exercise caution in deciding what the company should do to restore competition after his ruling that the company has an illegal monopoly on online searches and related advertising.

While Google plans to appeal that ruling at the end of the case, it says the next phase of “remedies” should focus on its distribution agreements with browser developers, mobile device manufacturers and wireless service providers.

The judge found that the agreements give Google a “significant, largely invisible, advantage over its rivals” and result in most devices in the US coming preloaded with Google’s search engine.

It is difficult to get out of the agreements, the judge said, especially for Android makers, which must agree to install Google search in order to include the Google Play Store on their devices.

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To fix this, Google could make them non-exclusive and, for Android phone makers, separate its Play Store from Chrome and search, the company said in court papers.

Unlike the government’s proposal, Google’s would not end revenue-sharing agreements, which pass a portion of the advertising revenue Google earns from search users to 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 approximately $20 billion from its deal with Google in 2022 alone.

Google’s proposal sets the stage for a trial Mehta will hold in April, where the US Department of Justice and a coalition of states will seek to show the need for wide-ranging remedies, including forcing Google to sell Chrome and potentially your Android mobile operating system. .

Prosecutors also want Google to stop paying to be the default search engine, stop investing in rival search and query-based artificial intelligence (AI) products, and license its search results and technology to its partners. rivals.

Prosecutors said the proposals aim to spur innovation in online search, where Mehta found that Google’s overwhelming market share prevents competitors from collecting the search data needed to improve their products. Prosecutors also seek to stop Google from extending its search dominance to AI. REUTERS