Alphabet’s Google has proposed new limits on its revenue-sharing agreements with companies such as Apple, which make Google’s search engine the default option on their devices and browsers. The move comes as part of Google’s efforts to address concerns in its ongoing antitrust case over its dominance in online search.
In August 2024, US District Judge Amit Mehta ruled that Google violated antitrust laws by suppressing competition in the search engine market. Google has since vowed to appeal the decision, arguing against the sweeping changes proposed by the US Department of Justice (DOJ).
The DOJ has pushed for severe remedies, including prohibiting Google from entering into revenue-sharing agreements and even recommending the sale of Chrome, the world’s most popular web browser. Google’s search engine currently accounts for about 90% of all online searches globally, according to Statcounter.
Google’s Proposed Remedies
In a legal filing submitted on Friday, Google presented its own set of remedies, which are notably less disruptive than those suggested by the DOJ. Key points include:
- Revenue-Sharing Limits: Google proposed capping or modifying revenue-sharing agreements to reduce anti-competitive concerns.
- Widening Default Search Options: Google suggested allowing different default search engines to be assigned to various platforms or browsing modes, increasing consumer choice.
- Default Search Provider Flexibility: Partners would have the option to change their default search provider at least once every 12 months.
Google defended its approach, stating that these measures would balance the interests of consumers, partners, and competition without the drastic consequences of the DOJ’s proposals.
The DOJ’s proposed remedies go much further than Google’s suggestions:
- End to Revenue-Sharing Agreements: The DOJ seeks to prohibit Google from entering into contracts that make its search engine the default option on devices and browsers.
- Breakup of Assets: The DOJ recommended that Judge Mehta force Google to sell Chrome, a move intended to reduce its control over both search and browsing markets.
Google criticized these proposals, describing them as “overbroad” and warning that they would have significant financial implications for its partners.
Impact on Google and the Tech Industry
Google’s default search deals with companies like Apple are critical to its business model, generating billions of dollars in annual revenue. Any restrictions on these agreements could reshape the tech landscape:
- For Google: Limits on agreements could weaken its market dominance and open opportunities for competitors like Microsoft’s Bing and DuckDuckGo.
- For Partners: Companies like Apple and other browser developers rely on these revenue-sharing deals to offset development costs. Reduced payments could force them to seek alternative monetization strategies.
Judge Mehta is expected to rule on the remedies phase of the case by August 2025, following further court proceedings. Google’s counterproposals, filed in response to a court-mandated deadline, aim to demonstrate its willingness to address concerns without dismantling its business model.
The case is a landmark moment in the ongoing scrutiny of Big Tech. It highlights the tension between fostering innovation, maintaining competition, and addressing monopolistic behavior in the digital age.
As regulators, courts, and companies clash over these issues, the outcome of this case could have far-reaching implications for the future of search engines, browsers, and the broader tech ecosystem.
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