The proposed changes are considerably less extensive than the government's suggestion that Google divest its Chrome browser, a proposition Google has characterized as an unduly disruptive intervention in the search engine industry.
In court filings, Google urged US District Judge Amit Mehta in Washington to proceed with caution in determining the necessary steps for the company to take in order to foster competition, following his ruling that identified Google as holding an illegal monopoly in online search and associated advertising. Google emphasized that courts have warned against implementing antitrust solutions that could stifle innovation.
This caution is particularly relevant in a landscape where groundbreaking advancements in artificial intelligence are swiftly transforming user interactions with various online products and services, including search engines, according to Google.
While Google intends to appeal the ruling at the conclusion of the case, it asserts that the forthcoming "remedies" phase should concentrate on its distribution agreements with browser developers, mobile device manufacturers, and wireless carriers.
The judge noted that these agreements provide Google with a significant, often unnoticed advantage over its competitors, leading to the pre-installation of Google's search engine on the majority of devices in the US.
The judge also pointed out that exiting these agreements is particularly challenging for Android manufacturers, who must agree to include Google search in order to access the Google Play Store on their devices.
To address this issue, Google proposed making these agreements non-exclusive and suggested that Android phone manufacturers could separate the Play Store from Chrome and search functionalities. Additionally, the proposal includes allowing browser developers who choose to set Google’s search engine as the default to reassess that decision on an annual basis.
REVENUE SHARING
In contrast to the government's proposal, Google's plan will not eliminate revenue sharing agreements, which allocate a portion of the advertising revenue generated by Google from search to the device and software companies that designate it as the default search engine.
Independent browser developers, such as Mozilla, the creator of Firefox, have indicated that these funds are essential for their operations. In 2022, Apple reportedly received around $20 billion from its partnership with Google.
Kamyl Bazbaz, a spokesperson for the search engine competitor DuckDuckGo, remarked that the proposal seeks to preserve the existing situation.
"When a court identifies a breach of competition laws, the remedy must not only halt the unlawful behavior and prevent its recurrence but also restore competition in the impacted markets," he stated.
Google's proposal paves the way for a trial that Judge Mehta will conduct in April, during which the US Department of Justice and a coalition of states will aim to demonstrate the necessity for extensive remedies, including the potential divestiture of Chrome and possibly the Android mobile operating system.
The government intends to call witnesses from OpenAI, the AI search startup Perplexity, and Microsoft, as indicated in court documents.
The prosecution seeks to prevent Google from securing preferential default search engine status, cease investments in competing search technologies and query-based AI products, and prohibit the licensing of its search results and technology to competitors.
These measures aim to foster innovation within the online search market, addressing Judge Mehta's finding that Google's market dominance restricts competitors' access to crucial search data for product improvement and prevents Google from leveraging its search dominance into the AI sector.