Google offers to relax search agreements in US antitrust case
Alphabet’s Google on Friday proposed relaxing agreements with Apple and others to make Google the default search engine on new devices, in a bid to resolve a U.S. ruling that Google dominates search illegally online.
The proposal is much narrower than the government’s attempt to force Google to sell its Chrome browser, which Google called an aggressive attempt to interfere in the search market.
Google urged US District Judge Amit Mehta in Washington to act cautiously in deciding what the company must do to restore competition, following his ruling that the company illegally held a monopoly in online search. online and related advertising. Google said in court papers that courts have warned against imposing antitrust measures that stifle innovation.
That’s especially true “in an environment where remarkable innovations in artificial intelligence are rapidly changing the way people interact with many online products and services, including search engines.” , Google said.
While Google plans to appeal that ruling at the conclusion of the lawsuit, the company said the upcoming “remediation” phase will focus on distribution agreements with browser developers, device manufacturers mobile and wireless service providers.
The judge found the agreements gave Google a “substantial, largely invisible advantage over its competitors” and resulted in most devices in the US having Google’s search engine pre-installed. Google.
The judge said it is difficult to escape the agreements, especially for Android manufacturers, who must agree to Google’s search settings to include Google’s Play Store on their devices.
To fix that, Google could make them non-exclusive and, for Android phone makers, separate their Play Store from Chrome and search, the company said in its proposal.
Google will allow browser developers who agree to make their search engine the default to reconsider that decision annually under the proposal.
REVENUE SHARING
Unlike the government proposal, Google would not end revenue-sharing agreements, which transfer a portion of the advertising revenue it earns from search to the device and software companies that use it as a tool. default search.
Independent browser developers including Mozilla, which makes Firefox, say the money is vital to their operations. Apple is estimated to have received about $20 billion from the deal with Google in 2022 alone.
Kamyl Bazbaz, a spokesperson for search engine competitor DuckDuckGo, said the proposal is aimed at maintaining the status quo.
“Once a court finds a violation of competition law, the remedy must not only stop the illegal conduct and prevent its recurrence but must also restore competition in the affected markets,” he said. enjoy”.
Google’s proposal sets the stage for the trial that Mehta will hold in April, where the US Department of Justice and a coalition of states will seek to demonstrate the need for wide-ranging remedies, including including forcing Google to sell Chrome and possibly its Android mobile operating system. .
According to court papers, the government plans to call witnesses from OpenAI, AI search startup Perplexity and Microsoft.
Prosecutors also want Google to stop paying to be the default search engine and stop investing in search rivals and query-based AI products, and licensing search results and technology your competitors.
The proposals aim to spur innovation in online search, where Mehta sees Google’s overwhelming market share making it impossible for competitors to collect the search data needed to improve their products. and prevent Google from extending its dominance in search to AI.