Google offers changes to Android and browser contracts in response to antitrust ruling
TECH: Alphabet's Google has proposed relaxing its agreements with Apple and others to set Google as the default search engine on new devices, to address a US ruling that said That it illegally dominates online search. The proposal is much narrower than the government forcing Google to sell its Chrome browser, which Google has called a blatant attempt to interfere in the search market.
Google in Washington US urged District Judge Amit Mehta to be careful in deciding what the company should do to restore competition, following his ruling that the company held an illegal monopoly in online search and related advertising. Google said in court papers that courts have warned against imposing antitrust measures that stifle innovation.
This is especially true “in an environment where remarkable artificial intelligence innovations are rapidly changing how people interact with many online products and services, including search engines,” Google said. It plans to appeal the ruling, saying the upcoming “remediation” phase should focus on its distribution agreements with browser developers, mobile device makers and wireless carriers.
The judge found that these agreements give Google “a large, largely unseen advantage over its competitors” and result in the majority of devices in the US being pre-loaded with Google's search engine. The judge said these agreements are difficult to get out of, especially for Android manufacturers, who must agree to install Google Search on their devices to include Google's Play Store. To fix this, Google could make them non-exclusive and separate its Play Store from Chrome and Search, for Android phone makers, the company said in its proposal. Google would allow browser developers to agree to set its search engine as the default every year under the proposal. Unlike the government's proposal, Google will not end revenue sharing agreements, which give a portion of the advertising revenue Google earns from search to device and software companies that offer it as the default search engine. Independent browser developers, including Mozilla, the maker of Firefox, have said these funds are vital to their operations. Apple stands to get an estimated $20 billion from its deal with Google in 2022 alone.
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