Shares of Google parent fall after DOJ seeks forced sale of Chrome browser

Shares of Google parent Alphabet fell more than 6% on Thursday after the Justice Department asked a federal judge to order a sale of Google’s Chrome web browser — one of several measures aimed at breaking the Big Tech firm’s monopoly on online search.

The stock drop signaled anxiety on Wall Street about Google’s future after DOJ lawyers outlined a set of proposed fixes for Google’s business in filings late Wednesday.

US District Judge Amit Mehta will have the final say on what remedies to implement after ruling in August that Google has an illegal stranglehold on the search market. Any remedy ordered by Mehta could have devastating consequences for an empire that generates more than $300 billion in revenue a year.

A forced divestment of Chrome “would permanently end Google’s control of this critical search access point and allow rival search engines to gain access to the browser that for many users is a gateway to the Internet,” the DOJ said in its filing.

Barring a sale of Chrome, US authorities say Google must either be required to sell its Android smartphone operating software or be barred from making search and other services mandatory on Android phones.

The judge could later mandate a sale of Android if Google failed to comply with the restrictions, the suit states. A Bloomberg analyst estimated this week that Chrome could be worth up to $20 billion.

The DOJ also asked the judge to block Google from entering into exclusive agreements with Apple and other companies to ensure that their search engine is enabled by default on most smartphones.

During the lawsuit, US authorities argued that Google is dependent on the payments – including $20 billion to Apple in 2022 alone – to capture more than 90% of the search market.

Government lawyers also want Google to be required to share data with rival search firms for a decade and to stop “self-preference” over its own products, such as YouTube or the Gemini AI chatbot.

Mehta is expected to issue his final decision on the remedies next summer. If he decides to order a forced sale of Chrome, Google will be required to follow up within six months of the final decision, pending the outcome of a likely appeal.

Google also faces a separate DOJ antitrust lawsuit targeting its digital advertising empire, which is scheduled for closing arguments next week.

Google blasted the DOJ’s recommendations in a lengthy blog post.

The company’s general counsel Kent Walker — who has faced reprimands from several federal judges for his role in implementing a policy that led to the destruction of evidence in antitrust inquiries — described the DOJ’s outline as a “radical interventionist agenda.”

“The DOJ’s wildly overarching proposal goes miles beyond the court’s decision,” Walker said in the filing. “It would break a number of Google products—including beyond Search—that people love and find useful in their everyday lives.”

Google has signaled that it will appeal Mehta’s original ruling as well as any remedies ordered.

Meanwhile, the search giant’s critics praised the DOJ’s requests.

DuckDuckGo, a rival search engine whose founder Gabriel Weinberg testified against Google at trial, was among those who spoke in favor of the sketch.

“The government has put forward a proposal that will free the search market from Google’s illegal grip and usher in a new era of innovation, investment and competition,” said Kamyl Bazbaz, senior vice president of public affairs at DuckDuckGo.

“There is nothing radical about this proposal: it is solidly based on the Court’s extensive findings of fact and proposes solutions consistent with past antitrust actions,” Bazbaz added.

Still, not everyone is convinced the DOJ’s proposals would be effective.

Bloomberg technology correspondent Mike Gurman called the idea of ​​a forced sale of Chrome “absurd.”

“Chrome is worth billions to Google, but not on the open market,” Gurman said. “And any company that buys it would just create a new monopoly.”

President-elect Donald Trump’s election victory added another wrinkle to the battle over Google’s future.

For years, Trump has been an outspoken critic of Google, accusing the company of political bias and even election interference over allegedly biased search results.

However, Trump has recently said he opposes a breakup of the company because it would benefit China and other rivals such as Mark Zuckerberg’s Meta.

Elsewhere, Trump’s nominee for attorney general Matt Gaetz has publicly called for a breakup of Google, but his confirmation to the key post is far from certain due to allegations of sexual misconduct during his time in Congress.