Google Offers Limited Changes to Search Deals in Antitrust Case

Google, facing a US ruling that it illegally dominates online search, has proposed changes to its agreements with companies like Apple to set Google as the default search engine on new devices, reports Reuters. This proposal, however, is significantly narrower than the government's demand that Google divest its Chrome browser.

Google, in a filing with US District Judge Amit Mehta, argued for a cautious approach to remedies, emphasizing the rapid advancements in artificial intelligence and the potential for overly broad interventions to stifle innovation. The company is appealing the original ruling but is focusing its immediate efforts on its distribution agreements with browser developers, device manufacturers, and wireless carriers.

Judge Mehta, in his initial ruling, found that these agreements, which pre-install Google Search on most US devices, give Google an "unseen advantage" over competitors. He noted that these agreements are difficult to exit, particularly for Android manufacturers who must agree to Google Search to include the Google Play Store.

Google's proposed remedy would make these agreements non-exclusive, allowing browser developers to revisit their default search engine choice annually. For Android phone manufacturers, Google proposes unbundling the Play Store from Chrome and search.

Unlike the government's proposal, Google's plan would not eliminate revenue-sharing agreements, which distribute a portion of Google's search ad revenue to companies that display Google Search as the default. Independent browser developers, including Mozilla, have stated that these payments are essential to their operations. Apple reportedly received an estimated $20 billion from its Google agreement in 2022 alone.

Kamyl Bazbaz, spokesperson for Google competitor DuckDuckGo, criticized Google's proposal as an attempt to maintain the status quo. "Once a court finds a violation of competition laws, the remedy must not only stop the illegal conduct and prevent its recurrence, but restore competition in the affected markets," he said.

The US Department of Justice and a coalition of states will present their arguments for more comprehensive remedies, including the potential divestiture of Chrome and Android, at a hearing in April. Google, in its court filings, has also outlined its opposition to government proposals to halt payments for default search engine status and to cease investments in search rivals and query-based AI products. The government also wants Google to license its search results and technology to competitors.

The government's proposals aim to foster greater competition in online search, where Google's dominant market share has hindered competitors from acquiring the necessary data to improve their products and threatens to extend Google's dominance to the burgeoning field of AI.