• The US Department of Justice continues to push for Google to sell Chrome.
• Follows a ruling that Google used exclusive deals to maintain search monopoly.

Wall Street’s confidence that president Trump would take a lenient stance on Google-parent Alphabet’s antitrust challenges has weakened after the Department of Justice (DOJ) renewed its call for the company to divest its Chrome web browser.

The latest DOJ filing reflects ongoing efforts to address Google’s dominance in online search and advertising, which have caused Google stock to trend lower. The DOJ’s filing last week calls for Google to sell Chrome, following similar proposals made by the Biden administration last year.

The government argues that Google’s dominance in search has been reinforced through “illegal conduct” that has created an “economic Goliath” with out-sized influence over the market. Federal Judge Amit Mehta previously ruled in August that Alphabet unlawfully maintained a monopoly over online search, limiting competition and innovation.

Judge Mehta will hear oral arguments on the proposed remedies in April, with a decision expected by early August. If the court agrees with the DOJ, Google could face structural changes that dramatically alter its business model.

Broader antitrust pressure on Google

In addition to the search-related antitrust case, Google is defending itself in a separate lawsuit concerning its dominance in the digital ad market. Known as the “DoubleClick trial,” the case stems from Google’s 2008 acquisition of the digital advertising firm of the same name for $3.1 billion.

The DOJ argues that the acquisition allowed Google to consolidate power in the ad-tech sector, limiting competition. A ruling in that case is expected later this spring.

The latest DOJ filing underscores the government’s intent to break up Google’s search dominance. In addition to requiring the sale of Chrome, the DOJ wants to end agreements that make Google the default search engine on various platforms, including Apple and Mozilla. The filing states that Google should “promptly and fully divest Chrome, along with any assets or services necessary to successfully complete the divestiture,” if approved by the court.

Judge Mehta’s August ruling highlighted how Google secured its search monopoly by paying manufacturers and browser developers to set Google as the default search engine. Evidence presented during the 2023 trial showed that Google spent $26.3 billion in 2021 alone on these agreements.

Approximately 70% of US search queries are conducted on platforms where Google is the default option, making it difficult for rival search engines to gain market share.

Proposed changes and industry impact

The DOJ is also pushing to prevent Google from signing future agreements that would establish it as the default search engine. The government intends to require Google to allow rival search engines to display their results and access its data for a decade.

In a shift from earlier demands, the DOJ no longer seeks to force Google to divest its artificial intelligence technologies. However, Google is now required to notify federal and state officials before making any new AI-related investments.

Google’s response and legal outlook

Google disagrees with the proposed changes. The company has submitted its own proposal, arguing that only minimal adjustments are needed. Google’s plan would allow it to continue making payments for default search placement but would require that other search engines have the opportunity to bid for placement on smartphones and web browsers.

Google spokesperson Peter Schottenfels said the government’s proposals would negatively affect consumers, the economy, and national security. Kent Walker, Google’s chief legal officer, previously called the DOJ’s strategy a “radical interventionist agenda” that could undermine user security and privacy and discourage innovation.

Arguments over the conflicting proposals are scheduled for April. If Judge Mehta sides with the DOJ, Google has signalled it will appeal, setting the stage for a potentially lengthy legal battle.

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