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Why are US officials pressuring Google to sell Chrome?

Tạp chí Doanh NghiệpTạp chí Doanh Nghiệp28/11/2024


DNVN - The US Department of Justice has just proposed strong restructuring measures for Google, including forcing the company to sell the Chrome browser.

Google icon on tablet screen. Photo: AFP/TTXVN

In November, the Justice Department issued a clear statement: "Google must divest Chrome," in response to its monopoly in online search.

The proposal follows a landmark court ruling last August, in which a federal judge found that Google had violated antitrust laws by illegally dominating the internet search market.

For Android, the US Department of Justice proposed two options: either Google divests, or accepts government control.

Both proposed measures involving Android and Chrome pose a major challenge to Google, especially in the advertising business that is the company's main source of profit.

Google's chief legal officer, Kent Walker, described the Justice Department's measures as "stunning" and "extreme." Google plans to file its own proposals next month and continue to appeal in court.

Losing Chrome would require Google to dramatically change the way it operates, according to Syracuse University Professor Beth Egan. The company currently relies on data from the browser to inform other services and improve its algorithms.

Google's advertising business relies heavily on its search engine, and the Chrome browser is the second-largest in the company's ecosystem. According to the Guardian (UK), Chrome is currently the most popular browser globally, accounting for nearly two-thirds of internet users. Bloomberg also estimates that the browser has more than 3 billion users worldwide and is valued at about $15 billion.

Without Chrome, Google's advertising business would be severely impacted, and the company's reach would shrink.

### Opposing views

Chrome logo on the phone screen and Google logo in the background. Photo: Getty Images/TTXVN

Google argues that forcing it to divest Chrome could undermine America’s global tech position. The Justice Department, in turn, argues that Google’s monopolistic behavior is harming that position.

The Justice Department has stressed that its primary goal is to increase competition in the marketplace. In court filings, the department said it wants to expand opportunities for rivals, prevent Google from continuing to benefit from its illegal behavior, and prevent the company from monopolizing the market in the future.

The prospect of Google selling Chrome, however, remains unclear. The Biden administration is stepping up scrutiny of big tech companies as it nears the end of its term, but the stance of the Trump administration is unclear. Trump’s pick for attorney general will take office in January and decide whether to continue or rescind the request for Google.

The Google ruling is a testament to the effectiveness of antitrust laws in the United States, which have existed for more than 100 years. Like many other countries, the United States also applies this law to deal with monopolies through the court system. In 1911, antitrust laws forced John D. Rockefeller's Standard Oil Corporation to dissolve.

In the 1960s and early 1970s, US regulators kept a close eye on monopolies, but in the 1980s, influenced by the Chicago School of Economics, regulators loosened their grip, with economists arguing that monopolies were acceptable if they were run efficiently. This led to a reduction in structural interventions in the years that followed, according to Ulrich Müller of the non-profit Rebalance Now.

About 20 years later, Microsoft became the target of antitrust regulators. A US court ruled that Microsoft should be broken up for monopolistic behavior. The company tightly integrated its Windows operating system with its Internet Explorer browser, driving rival Netscape out of the market. However, Microsoft successfully appealed and avoided being broken up by allowing its rival access to some parts of the system.

Thanh Mai (t/h)



Source: https://doanhnghiepvn.vn/cong-nghe/vi-sao-gioi-chuc-my-gay-ap-luc-de-google-ban-chrome/20241128093613348

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