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 argued on Wednesday that Google must sell its Chrome internet browser after a federal court ruled earlier this year that the company maintained an illegal monopoly over internet searches.
U.S. regulators also argued Google must share data and search results with competitors, among other things, in efforts to end the company’s monopoly, according to Reuters.
“Google’s unlawful behavior has deprived rivals not only of critical distribution channels but also distribution partners who could otherwise enable entry into these markets by competitors in new and innovative ways,” the DOJ said in a court filing.
In August, a judge determined that Google had built an illegal monopoly over internet searches, more than 90% of which are processed through the search engine giant.
JUSTICE DEPARTMENT TO ASK JUDGE TO FORCE GOOGLE TO SELL CHROME BROWSER: REPORTS
Google must sell its Chrome internet browser after a federal court ruled earlier this year that the company maintained an illegal monopoly over internet searches, the DOJ argued on Wednesday. (Thilina Kaluthotage/NurPhoto via Getty Images / Getty Images)
Google has made billion-dollar payments to Apple and other device manufacturers for years to ensure its search engine is the default on smartphones and web browsers to preserve its market share.
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.
The demands from the DOJ include barring Google from re-entering the browser market for five years, insisting that Google sell its mobile operating sytem for Android if competition isn’t restored, and prohibiting Google from buying or investing in search rivals, query-based AI products or advertising technology, Reuters reported.
More than 90% of internet searches are processed through Google (Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
Google has called the proposals from the DOJ radical and said it would appeal.
GOOGLE DISCLAIMER TELLS CHROME USERS ‘INCOGNITO’ MODE MAY NOT BE AS PRIVATE AS THEY THINK
Google previously warned that selling off Chrome and Android “would break them” because the company currently offers them and their code for free on an open-source basis.
Google has made billion-dollar payments to Apple and other manufacturers for years to ensure it is the default search engine on smartphones and web browsers. (Reuters Photos)
The company will have the opportunity to present its own proposals next month.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
U.S. District Judge Amit Mehta has scheduled a trial on the proposals for April, though that could change once President-elect Donald Trump and his DOJ are in charge.
Reuters contributed to this report.
