Who's facing the antitrust music first: Google or Meta? According to Bloomberg's latest scoop, Google seems to be at the top of the hit list. The U.S. Department of Justice is reportedly gearing up to demand some major shake-ups, including the sale of Google’s Chrome browser and the separation of Android from its search and Google Play divisions.
Chrome, dominating with about 67% market share, could cause a massive revenue loss for Google if it is sold. The browser is pivotal for Google's data access and targeted ads strategy. The lawsuit claims Chrome's integration allows Google to push its other services unchallenged, stifling competition and limiting distribution for rival browsers.
Google officer in NYC
(Video: Reuters)
Android isn't off the hook either. Although Google might retain the OS, the Justice Department wants it split from Google’s search and especially from Google Play, which not only houses the app store but also links third-party apps to Google’s tracking and advertising services. This mirrors the EU’s demands on Apple to allow competing app platforms. A successful separation could mean users opting out of Google services for emails, navigation, app downloads, or calls, using third-party alternatives instead. Android currently holds about 72% of the mobile market, with Apple’s iOS at 28%, as per StatCounter.
The lawsuit also presses for more transparency from Google regarding ad placements and demands prior consent for using online data from third-party content sites for its AI training. Additionally, the plaintiffs aim to block Google from signing exclusivity deals that prevent partners from working with third parties.
Unsurprisingly, Google is pushing back hard. "The Department of Justice is pursuing an extreme agenda far beyond the legal issues in this case," said Lee Ann Mulholland, Google’s VP for Regulatory Affairs.
However, this is merely a request to the judge, with no guarantee of approval. Meanwhile, Meta is also in legal hot water, potentially having to sell WhatsApp and Instagram, hinting at a growing trend of similar lawsuits, spurred by the EU's success against Apple. Amazon faces a similar suit over its online retail dominance (and possibly in cloud computing too).
One giant that's dodged the crosshairs so far is Microsoft, despite holding around 74% of the PC operating system market—similar to Android's mobile share. If the move against Android succeeds, it could trigger an avalanche of antitrust claims that will sweep Microsoft as well, demanding a structural separation between its services and its paid operating system.
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