US regulators seek to break up Google, forcing Chrome sale as part of monopoly punishment
Washington, Nov 21: US regulators want a federal judge to break up Google to prevent the company from continuing to squash competition through its dominant search engine after a court found it had maintained an abusive monopoly over the past decade.
The proposed breakup floated in a 23-page document filed late Wednesday by the US Department of Justice calls for sweeping punishments that would include a sale of Google's industry-leading Chrome web browser and impose restrictions to prevent Android from favouring its own search engine.
A sale of Chrome “will permanently stop Google's control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet”, Justice Department lawyers argued in their filing.
Although regulators stopped short of demanding Google sell Android too, they asserted the judge should make it clear the company could still be required to divest its smartphone operating system if its oversight committee continues to see evidence of misconduct.
The broad scope of the recommended penalties underscores how severely regulators operating under President Joe Biden's administration believe Google should be punished following an August ruling by US District Judge Amit Mehta that branded the company as a monopolist.
The Justice Department decision-makers who will inherit the case after President-elect Donald Trump takes office next year might not be as strident. The Washington, DC, court hearings on Google's punishment are scheduled to begin in April and Mehta is aiming to issue his final decision before Labour Day.
If Mehta embraces the government's recommendations, Google would be forced to sell its 16-year-old Chrome browser within six months of the final ruling. But the company certainly would appeal any punishment, potentially prolonging a legal tussle that has dragged on for more than four years.
Besides seeking a Chrome spinoff and a corralling of the Android software, the Justice Department wants the judge to ban Google from forging multibillion-dollar deals to lock in its dominant search engine as the default option on Apple's iPhone and other devices. It would also ban Google from favouring its own services, such as YouTube or its recently-launched artificial intelligence platform, Gemini.
Regulators also want Google to license the search index data it collects from people's queries to its rivals, giving them a better chance at competing with the tech giant. On the commercial side of its search engine, Google would be required to provide more transparency into how it sets the prices that advertisers pay to be listed near the top of some targeted search results.
Kent Walker, Google's chief legal officer, lashed out at the Justice Department for pursuing “a radical interventionist agenda that would harm Americans and America's global technology”.
In a blog post, Walker warned the “overly broad proposal” would threaten personal privacy while undermining Google's early leadership in artificial intelligence, “perhaps the most important innovation of our time”.
Wary of Google's increasing use of artificial intelligence in its search results, regulators also advised Mehta to ensure websites will be able to shield their content from Google's AI training techniques.
The measures, if they are ordered, threaten to upend a business expected to generate more than USD 300 billion in revenue this year.
“The playing field is not level because of Google's conduct, and Google's quality reflects the ill-gotten gains of an advantage illegally acquired,” the Justice Department asserted in its recommendations. “The remedy must close this gap and deprive Google of these advantages.”
It's still possible that the Justice Department could ease off attempts to break up Google, especially if Trump takes the widely expected step of replacing Assistant Attorney General Jonathan Kanter, who was appointed by Biden to oversee the agency's antitrust division.
Although the case targeting Google was originally filed during the final months of Trump's first term in office, Kanter oversaw the high-profile trial that culminated in Mehta's ruling against Google.
Working in tandem with Federal Trade Commission Chair Lina Khan, Kanter took a get-tough stance against Big Tech that triggered other attempted crackdowns on industry powerhouses such as Apple and discouraged many business deals from getting done during the past four years.
Trump recently expressed concerns that a breakup might destroy Google but didn't elaborate on alternative penalties he might have in mind. “What you can do without breaking it up is make sure it's more fair,” Trump said last month.
Matt Gaetz, the former Republican congressman that Trump nominated to be the next US Attorney General, has previously called for the breakup of Big Tech companies.
Gaetz faces a tough confirmation hearing.
This latest filing gave Kanter and his team a final chance to spell out measures that they believe are needed to restore competition in search. It comes six weeks after Justice first floated the idea of a breakup in a preliminary outline of potential penalties.
But Kanter's proposal is already raising questions about whether regulators seek to impose controls that extend beyond the issues covered in last year's trial, and — by extension — Mehta's ruling.
Banning the default search deals that Google now pays more than USD 26 billion annually to maintain was one of the main practices that troubled Mehta in his ruling.
It's less clear whether the judge will embrace the Justice Department's contention that Chrome needs to be spun out of Google, and the recommendation that Android should be completely walled off from the company's own search engine.
“It is probably going a little beyond,” Syracuse University law professor Shubha Ghosh said of the Chrome breakup. “The remedies should match the harm, it should match the transgression. This does seem a little beyond that pale.”
Google rival DuckDuckGo, whose executives testified during last year's trial, asserted the Justice Department is simply doing what needs to be done to rein in a brazen monopolist.
“Undoing Google's overlapping and widespread illegal conduct over more than a decade requires more than contract restrictions: it requires a range of remedies to create enduring competition,” Kamyl Bazbaz, DuckDuckGo's senior vice president of public affairs, said in a statement.
Trying to break up Google harks back to a similar punishment initially imposed on Microsoft a quarter century ago following another major antitrust trial that culminated in a federal judge deciding the software maker had illegally used his Windows operating system for PCs to stifle competition.
However, an appeals court overturned an order that would have broken up Microsoft, a precedent many experts believe will make Mehta reluctant to go down a similar road with the Google case.
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Commercial LPG hike: Delhi restaurant owners warn of higher menu rates, job losses
New Delhi (PTI) A day after a 50 per cent rise in commercial LPG cylinder prices, Delhi's food business, with restaurant owners and street vendors have warned of higher menu rates, financial strain and potential job losses if the trend persists.
The price of commercial LPG was hiked by a steep Rs 993 per 19 kg cylinder, marking the third consecutive monthly hike amid rising global energy prices linked to the West Asia conflict.
For many in the restaurant industry, the spike has been both sudden and steep.
Manpreet Singh, honorary treasurer of the National Restaurant Association of India, said that eateries are already grappling with supply challenges alongside rising costs.
"There is a huge difficulty in getting these cylinders, and black marketing is also increasing in many unregulated sectors," he said, noting that prices that were once around Rs 1,600, often dropping to nearly Rs 1,300 with discounts, have now surged to between Rs 3,000 and Rs 4,000 per cylinder.
He further added that a medium-sized restaurant typically uses between two and five cylinders daily, making the increase particularly burdensome as costs mount.
Singh further said that as costs mount, smaller establishments could struggle to stay afloat. Instead, the association has advised restaurants to shift towards piped natural gas connections through Indraprastha Gas Limited as a more sustainable alternative.
"If this problem continues, PNG is the only long-term solution," he said, adding that temporary measures like coal offer limited relief due to slower cooking times and that it can largely be used only for tandoors.
Echoing similar concerns, Kabir Suri, owner of Mamagoto in Khan Market, said the impact is already visible across the industry. "There has been almost a threefold increase in cylinder prices for restaurants," he said, adding that rising fuel and logistics costs are compounding the pressure.
"If this continues, it will become a significant financial burden, and food prices will inevitably go up. Adding to this burden, higher fuel costs are also affecting logistics and transportation, making a price rise unavoidable. The extent of the impact will vary between small eateries and large chains depending on their scale," he said.
Global oil prices have surged nearly 50 per cent following disruptions in energy supply chains due to the West Asia conflict, pushing up commercial fuel costs and transport expenses.
A West Delhi-based restaurateur said they are trying to manage rising costs while keeping their staff secure. "We are trying to ensure that our staff, from kitchen workers to waiters, are paid on time and do not face immediate hardship," the owner said.
"We are a small restaurant with seating for about 20 to 25 people at a time. But if this continues for long, we will have to take difficult calls. There is only so much we can absorb, and menu prices will have to go up. We hope this does not continue for a longer period," he said.
Another restaurant owner in North Delhi, who did not wish to be named, said operational adjustments alone may not be enough. "We are checking our costs very carefully and trying to cut wherever possible, but if fuel prices remain high, it will eventually affect how we run the business," the owner said.
"Coal helps in tandoor cooking, but it takes more time," the owner further added.
The strain is even more acute among street vendors, many of whom operate on thin margins. A vendor in Saket said he had recently expanded his business, moving from a mobile cart to a rented outlet.
"I have a family to feed and more responsibilities now. Earlier, I managed with a moving cart, but after renting the place, expenses increased," he said. "Whenever cylinders were unavailable, I had to buy them at higher rates in the black market. Now even regular supply is too expensive, and if this continues, we may have to shut down," he added.
In Laxmi Nagar, another vendor said they are struggling to keep the business running. "Sometimes we even used domestic cylinders from home when supply ran out because we had to keep the stall running," he said, adding that rising costs leave little choice but to increase prices or bear losses.
On April 1, the rates of commercial LPG cylinders were hiked by Rs 195.50 per cylinder, followed by a Rs 114.5 hike on March 1, taking the total increase over the past three months to Rs 1,303. With the latest revision, a 19 kg commercial LPG cylinder now costs Rs 3,371.5 in Delhi, up from Rs 2,078.5 earlier.
The prices of domestic LPG cylinders used for household cooking have remained unchanged. They were last increased by Rs 60 per 14.2 kg cylinder on March 7 and currently cost Rs 913 in Delhi.
