Tuesday, November 19, 2024

DOJ Wants Google to Sell Chrome and De-Google Android

Juli Clover (Hacker News, 9To5Google):

The United States Department of Justice wants Google to sell off its Chrome browser as part of an ongoing antitrust lawsuit, reports Bloomberg. Earlier this year, Google was found to have a search monopoly, and antitrust regulators have since been deciding on the actions that should be taken to address Google’s anticompetitive practices.

The DoJ plans to ask the court to force Google to sell Chrome, which is the most popular web browser in the world by a wide margin. Chrome’s integration with Google Search and other Google products has been cited as one of the factors limiting search competition.

Regulators also want Google to uncouple the Android operating system from other products like Google Search and the Google Play Store, both of which are apps installed on Android devices by default. It’s not clear how unbundling Android from Google Play would work as Google Play is the Android app store.

This doesn’t make sense to me, and I don’t even really understand what they think it would help with. If there are illegal behaviors, why not address them directly?

Christina Warren:

This was stupid when they tried to do this to Microsoft 25 years ago. It’s equally stupid to do this to Google.

John Gruber:

If Google were forced to sell Chrome, who’d make the default web browser for Android? Android can’t ship without a default browser. And the DOJ wants Google to “uncouple” Android from the Google Play store? Allowing Google to keep Android but not make its own web browser or app store is just nonsense.

[…]

Chrome is not a standalone business. Android is not a standalone business. They’re both just appendages of Google that serve only as distribution channels for the advertising Google shows in search results, and the money it makes from advertising and game commissions in the Play Store. It’s like saying I have to sell my left foot. It’s very valuable to me, but of no value to anyone on its own.

Dare Obasanjo:

This proposal is kind of nuts since the only business model for web browsers is revenue share from search results. That’s how Edge, Safari, Firefox and Chrome make money.

So the only way it makes sense for anyone to buy Chrome is to make Google the default search, otherwise it’s not worth the investment.

M.G. Siegler:

The idea that Google would be broken up as a result of their loss in the antitrust trial against their Search monopoly was never going to happen. Instead, as I wrote last month, it was more like Negotiating 101. Start by putting the biggest ask out there, see how the market (including, notably, Google) reacts and go from there. Having read that particular room, it seems like the DoJ is now closing in on their actual opening proposal.

[…]

The government would argue that consumers will benefit as they'll no longer be as locked into Google Search – especially if this is coupled with an order to end any default search agreements with other browser makers. But unless those other browser makers choose another search engine as the default, it feels like Google Search will not be impacted very much. It is interesting to think if that would impact the uptake and growth of Gemini and a few other Google products, such as their payment services, but that's not what is on trial here.

It's not clear who could pay what for Chrome. Bloomberg throws out the notion of OpenAI being one potential home, but would the government really want that? That would risk anointing – well, really entrenching – a king in a new field. OpenAI's main benefactor, Microsoft could acquire it, especially now that their own Edge browser is all-in on Chromium. But they would probably just use it to bolster not just Bing by also their own AI products and services. And that would be extremely awkward for the government as well.

Previously:

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"why not address them directly?" - Monopolistic advantage and practices are realistically inevitable once a business becomes this dominant, and in Google's case are also a direct result of the intimate interlinking of various branches of its business. So how could this be addressed more directly than by imposing a forced separation of aspects of the business? Can you give an example of what you mean?


"This was stupid when they tried to do this to Microsoft 25 years ago"

No, what the government did back then worked. That's the opposite of stupid.

"If Google were forced to sell Chrome, who’d make the default web browser for Android?"

Optimally, there would be no default browser.

"Android can’t ship without a default browser"

Yes, it can.

"This proposal is kind of nuts since the only business model for web browsers is revenue share from search results"

Because of predatory pricing! That's the whole problem! This is like the cops trying to rescue a hostage, and the hostage refusing to be rescued because "I can't be free because I'm a hostage, and hostages are not free by definition!"

Yeah, but if you just come with us, you're not a hostage any longer, are you? If we go after the companies that give away browsers for free in order to manipulate the browser market, then maybe browsers won't be free anymore, and there will be an actual market?

But this whole discussion is pointless. None of this is going to happen. As soon as Trump takes over, all of this antitrust stuff is going to be over, and the attention is going to shift drastically.

Trump has already named Brendan Carr to head the FCC, which tells us what the focus is going to be. Think changes to Section 230, no more net neutrality, "TAKE AWAY THE CBS LICENSE" because Trump doesn't like what they broadcast, etc. That's the kind of stuff his administration will focus on. Not antitrust. Bye bye Lina Khan, it was nice while it lasted.


@Graham I don’t have a specific example handy, but my recollection is that the main problem was around search and ads and with certain anti-competitive ads behaviors. I don’t see how selling Chrome addresses any of this. Google essentially had a monopoly before Chrome even existed.


@Plume How would divesting Google of Chrome or not having a default browser change any of that? The other browsers would still have the same business models. So would Chrome developed under a separate organization. I don’t see how any of this would lead to a market of non-free browsers.


"The other browsers would still have the same business models"

The other browser have that business model because there are subsidized free browsers from monopolists on the market. There used to be paid browsers before all the platform holders decided that they wanted to own that platform, and started giving away free browsers.


@Plume I bought iCab and OmniWeb, but there was never a time, even before Google existed, when paid browsers had meaningful marketshare. I don’t think that would change unless Apple, Microsoft, etc. are also forbidden from offering free browsers, which is never going to happen.


"there was never a time, even before Google existed, when paid browsers had meaningful marketshare"

Netscape Navigator was a paid browser. Opera was a paid browser. OmniWeb was a paid browser (and basically supported that whole company until Safari killed it). Mosaic, a free browser, lost market share to Netscape, a paid browser.

All of these companies had business plans that were based on selling software licenses to customers. Even later, when some of these companies started offering free non-commercial licenses, they still made money from business licenses.

It was only when the free browsers from platform owners came out that the paid browser market collapsed.


Though, to be fair, people generally did not actually buy a browser. Their ISPs made a bundling deal with Netscape or Microsoft, and you got the browser on an ISP-shipped CD.

Regardless, this meant that Netscape’s business was in selling software licenses, not in creeping on users.


@Plume Yes, there were paid browsers, but I don’t think most people used them. Netscape was free for non-commercial use, and probably many ignored that restriction. I’m not even sure these were self-supporting, as Netscape was selling server products, Omni was selling consulting and other apps, etc.


>Netscape was free for non-commercial use

I don’t believe that’s true. Netscape simply wasn’t usually bought in retail because your ISP gave you a copy.


"Netscape was free for non-commercial use"

It became free for non-commercial use, but was not originally. But even after it became free for non-commercial use, their business was selling software licenses, as Sören says. Only the free browsers from platform owners destroyed that market.


@Plume

Wikipedia:

Netscape announced in its first press release (October 13, 1994) that it would make Navigator available without charge to all non-commercial users, and beta versions of version 1.0 and 1.1 were freely downloadable in November 1994 and March 1995, with the full version 1.0 available in December 1994.

[…]

The “N” evaluation versions were identical to the commercial versions; the letter was intended as a reminder to people to pay for the browser once they felt they had tried it long enough and were satisfied with it. This distinction was formally dropped within a year of the initial release, and the full version of the browser continued to be made available for free online, with boxed versions available on floppy disks (and later CDs) in stores along with a period of phone support.


"The first few releases of the product were made available in "commercial" and "evaluation" versions; for example, version "1.0" and version "1.0N". The "N" evaluation versions were identical to the commercial versions; the letter was intended as a reminder to people to pay for the browser once they felt they had tried it long enough and were satisfied with it."

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