Evercore ISI senior managing director Mark Mahaney discusses whether the Justice Department lawsuit against Google will affect its stock price on ‘Varney & Co.’
The Department of Justice (DOJ) is expected to request a judge to force Alphabet’s Google to sell its Chrome internet browser, which the DOJ claims has been used to maintain an illegal monopoly on online searches, according to reports.
A federal judge ruled in August that Google had built an illegal monopoly over internet searches, more than 90% of which are processed through the search engine giant.
Bloomberg News reported on Monday that not only will the DOJ ask the judge who ruled against Google for illegally monopolizing the search market to require measures related to artificial intelligence and its Android smartphone operating system, but it will also ask a judge to force the internet giant to sell off its popular Chrome internet browser.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GOOG | ALPHABET INC. | 176.80 | +2.91 | +1.67% |
“The DOJ continues to push a radical agenda that goes far beyond the legal issues in this case,” Lee-Anne Mulholland, vice president of Google Regulatory Affairs, said in a statement to FOX Business on Monday. “The government putting its thumb on the scale in these ways would harm consumers, developers and American technological leadership at precisely the moment it is most needed.”
DOJ CONSIDERS GOOGLE BREAKUP AFTER INTERNET SEARCH MONOPOLY RULING
A federal judge ruled in August that Google had built an illegal monopoly over internet searches. (Rafael Henrique/SOPA Images/LightRocket via Getty Images/File)
The DOJ did not respond to FOX Business’s request for comment on the matter.
If successful, the move would likely be one of the most aggressive moves by the Biden administration against what it alleges are Big Tech monopolies.
Still, President-elect Donald Trump may have the biggest impact on the case. Trump initially said he would prosecute Google for what he perceived was bias against him, about two months before the presidential election. He changed his tune about a month later, questioning whether it was a good idea to break up the company.
GOOGLE FACES ANOTHER DOJ ANTITRUST LAWSUIT OVER ALLEGED AD-TECH MONOPOLY
The Justice Department is expected to request a judge to force Google to sell its Chrome internet browser. (Roberto Machado Noa/LightRocket via Getty Images)
Once U.S. District Judge Amit Mehta makes a final ruling, which Reuters reported could be by August 2025, Google plans to file an appeal.
The DOJ’s proposed remedies could have a significant impact on how Americans find information on the internet while shrinking Google’s revenues and giving its competitors an opportunity to grow.
In October, the DOJ said that to address the monopoly it may ask the court to require Google to divest its Chrome browser and its Android operating system.
It also may request the court to stop Google’s payments to have its search engine preinstalled or set as the default on new devices or require it to share search data with other competing providers.
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The Department of Justice building in Washington, D.C. (Stefani Reynolds/AFP via Getty Images/File)
Prosecutors also signaled they will look to prevent Google from dominating the growing field of artificial intelligence (AI), potentially barring Google from entering into agreements that limit its AI rivals’ access to content and allowing websites to opt out of Google using their content to train AI models.
Google has made annual payments to Apple and other device manufacturers to ensure its search engine is the default on smartphones and web browsers to preserve its market share. In 2021, Google made $26.3 billion in such payments.
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Google also warned that splitting Chrome and Android from Google “would break them” because Google currently offers them and their code for free on an open-source basis.
FOX Business’ Eric Revell contributed to this report.
