US Push to Force Google to Sell Chrome Could Shake Tech Giant
AFP/APP
New York: In a landmark move against big tech, US antitrust lawyers have recommended the forced sale of Google’s Chrome browser to curb the company’s dominant market position.
The proposal, submitted to US District Court Judge Amit Mehta by the Department of Justice (DOJ), aims to address Google’s monopoly power in online search and is expected to be decided upon next year.
The potential breakup could significantly impact Google’s business model, which relies on free services monetized through targeted ads and data collection.
“This would be a huge gut punch to Google,” said Dan Ives, an analyst at Wedbush Securities. Syracuse University advertising professor Beth Egan noted that Chrome is a key source of data for Google’s algorithms, which enhance its other services like Maps.
Despite the potential setback, Egan believes Google would adapt. “Divesting the browser won’t kill Google as a company,” she said, though users might face challenges as the company warns of possible disruptions in blog posts defending its position.
Valuation and Buyers
Chrome, with over three billion users globally, is estimated to be worth at least $15 billion, according to Bloomberg analysts. However, its actual market value remains uncertain, with limited precedents for such a sale.
Finding a buyer could prove difficult. Evelyn Mitchell-Wolf, a senior analyst at Emarketer, pointed out that potential buyers with the financial capacity, such as major US-based artificial intelligence firms, are likely under antitrust scrutiny themselves. Speculation has included Elon Musk’s AI startup, given his financial resources and close ties to incoming President Donald Trump.
If divested, Chrome’s ownership change might provide opportunities for competitors like Microsoft’s Edge and Apple’s Safari. However, analysts agree that Chrome’s user base is unlikely to shift significantly, provided the browser retains its quality and popular features.
The DOJ’s argument that Chrome’s dominance is tied to its status as a default search engine was challenged by analysts, who highlighted convenience and user experience as the primary drivers of its popularity.
The Trump Factor
Judge Mehta is unlikely to adopt all the DOJ’s recommendations, with CFRA analyst Angelo Zino calling them “extreme and unlikely to be imposed.” Additionally, the incoming Trump administration’s stance remains a wild card.
While Trump previously expressed opposition to dismantling Google, citing the company’s strategic importance in countering China, his administration has also accused Google of being biased against conservatives. This duality leaves uncertainty over whether the administration will support the DOJ’s push.
The case represents a critical test of US antitrust policy, with implications for global tech regulation and innovation.
