Google Proposes Loosening Agreements with Apple and Others to Address Antitrust Concerns
Google’s Proposal to Address Antitrust Concerns
Alphabet’s Google proposed on Friday (Dec 20) a loosening of its agreements with Apple and others to set Google as the default search engine on new devices to address a US ruling that it unlawfully dominates online search. The proposal is much narrower than the government’s bid to make Google sell its Chrome browser in the antitrust case over online search.
Company’s Request to Judge
Google urged US District Judge Amit Mehta in Washington to move cautiously in deciding what the company must do to restore competition after his ruling that the company holds an illegal monopoly in online search and related advertising. While Google plans to appeal that ruling at the end of the case, it says the upcoming "remedies" phase should focus on its distribution agreements with browser developers, mobile device manufacturers, and wireless carriers.
Agreements Under Scrutiny
The judge found the agreements give Google a "major, largely unseen advantage over its rivals" and result in most devices in the US coming pre-loaded with Google’s search engine. The agreements are hard to exit, especially for Android manufacturers, which must agree to install Google search in order to include Google’s Play Store on their devices.
Google’s Proposed Solution
To fix that, Google could make the agreements non-exclusive and, for Android phone manufacturers, unbundle its Play Store from Chrome and search, the company said in court papers. This would allow other search engines, such as Microsoft’s Bing, to be pre-installed on devices, potentially increasing competition.
Divergence from Government’s Proposal
Unlike the government’s proposal, Google’s would not end revenue sharing agreements, which pass a portion of ad revenue Google makes off of search users to the 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 an estimated $20 billion from its agreement with Google in 2022 alone.
Upcoming Trial
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 making Google sell off Chrome and potentially its Android mobile operating system. Prosecutors also want Google to stop paying to be the default search engine, and cease investments in search rivals and query-based artificial intelligence (AI) products, and license its search results and technology to rivals.
Conclusion
Google’s proposal aims to address antitrust concerns by loosening its agreements with Apple and others, allowing for greater competition in the online search market. The proposal does not go as far as the government’s proposal to make Google sell its Chrome browser, but it does offer a potential solution for independent browser developers who rely on revenue sharing agreements with Google.
FAQs
Q: What is Google’s proposal to address antitrust concerns?
A: Google proposes to loosen its agreements with Apple and others to set Google as the default search engine on new devices.
Q: How does Google’s proposal differ from the government’s proposal?
A: Google’s proposal does not end revenue sharing agreements, unlike the government’s proposal.
Q: What is the government’s proposal in the antitrust case?
A: The government seeks to make Google sell its Chrome browser, and potentially its Android mobile operating system, as part of a remedy to address Google’s dominance in online search.
Q: What is the purpose of the upcoming trial?
A: The trial will determine the need for wide-ranging remedies, including making Google sell off Chrome and potentially its Android mobile operating system, to address its dominance in online search.
