DOJ pushes for Google to break off Chrome browser after antitrust case
U.S. Assistant Attorney General Jonathan Kanter speaks about the antitrust lawsuit against Live Nation Entertainment during a press conference as Attorney General Merrick Garland and Deputy Attorney General Lisa O. Monaco look on during a press conference at the Department of Justice in Washington, U.S., May 23, 2024. REUTERS/Ken Cedeno
Ken Cedeno | Reuters
The Department of Justice is calling for Google to divest its Chrome browser, following a ruling in August that the company holds a monopoly in the search market.
Chrome, which Google launched in 2008, provides the search giant with data it then uses for targeting ads. The DOJ said in a filing on Wednesday that forcing the company to get rid of Chrome would create a more equal playing field for search competitors.
“To remedy these harms, the [Initial Proposed Final Judgment] requires Google to divest Chrome, which 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,” the 23-page filing reads.
Additionally, the DOJ said that Google be prevented from entering into exclusionary agreements with third parties like Apple and Samsung. The DOJ also said that Google be prohibited from giving its search service preference within its other products.
The DOJ also said that remedies should prevent Google from eliminating “emerging competitive threats through acquisitions, minority investments, or partnerships.” The DOJ said that the “proposed remedies run for a period of 10 years.” The filing also says the search company should be required to provide a technical committee with a monthly report outlining any changes to its search text ads auction.
“The proposed remedies are designed to end Google’s unlawful practices and open up the market for rivals and new entrants to emerge,” the filing reads.
Search advertising accounted for $49.4 billion in revenue in parent company Alphabet’s third quarter, representing three-quarters of total ad sales in the period.
The DOJ’s request represents the agency’s most aggressive attempt to break up a tech company since its antitrust case against Microsoft, which reached a settlement in 2001.
In addition to its call for Google to divest Chrome, the DOJ said forcing the search company to divest its Android mobile operating system would also aid in restoring competition, “but Plaintiffs recognize that such divestiture may draw significant objections from Google or other market participants.”
Instead, the DOJ suggested that the other remedies should be enough to “blunt Google’s ability to use its control of the Android ecosystem to favor its general search services,” and if they “ultimately fail to achieve the high standards for meaningful relief in these critical markets, the Court could require return to” the Android divestiture suggestion.
In August, a federal judge ruled that Google holds a monopoly in the search market. The ruling came after the government in 2020 filed its landmark case, alleging that Google controlled the general search market by creating strong barriers to entry and a feedback loop that sustained its dominance. The court found that Google violated Section 2 of the Sherman Act, which outlaws monopolies.
Last month, the DOJ indicated it was considering a breakup of Google businesses, including potentially breaking up its Chrome, Play or Android divisions.
Additionally, the DOJ suggested limiting or prohibiting default agreements and “other revenue-sharing arrangements related to search and search-related products.” That would include Google’s search arrangements with Apple on the iPhone and Samsung on its mobiles devices, deals that cost the company billions of dollars a year in payouts.
Google has said it will appeal the monopoly ruling, which would draw out any final remedy decisions.
However, the most likely outcome, according to some legal experts, is that the court will ask Google to do away with certain exclusive agreements, like its deal with Apple. While a breakup is an unlikely outcome, the experts said, the court may ask Google to make it easier for users to access other search engines.
WATCH: What DOJ’s focus on Google means for the tech company
Thomas Fuller | Lightrocket | Getty Images
Reddit shares popped about 5% after the social media company debuted new artificial intelligence-powered advertising tools.
The two new features, announced Monday in a post during the Cannes Lions festival, will help brands better leverage discussions on the platform. The company said the tools are powered by an engine called Reddit Community Intelligence that turns “posts and comments into structured intelligence.”
Reddit announced a “listening tool” called Reddit Insights, which shares real-time insights with marketers to help them identify trends and launch campaigns. The other tool, called Conversation Summary Add-ons, allows brands to show “positive” user content under their ads.
“These are tools for a new era of community marketing, one where brands can tap into Reddit’s authenticity and connect meaningfully with high-intent communities around the world,” the company wrote.
The company said Publicis served as the exclusive alpha tester for Reddit Insights, while Lucid and Jackbox Games were among the early testers for Conversation Summary Add-Ons.
Companies across industries are betting on new ways to harness AI to improve advertising campaigns and better engage with users. These new tools are transforming the industry while also putting pressure on some advertising stalwarts.
The industry is also currently navigating a bumpy environment spurred by the trade war with China.
During the recent earnings season, many companies warned of sluggish advertising sales in certain regions due to a rocky macroeconomic environment. Recent developments, however, have suggested a cooling of tensions between the U.S. and China.
Last month, Reddit posted strong sales and upbeat guidance. The company has benefited from recent changes to Google search and internal site improvements, which include convincing logged-out users to open accounts. Logged-in accounts are more beneficial to advertisers.
WATCH: Outgoing WPP CEO says AI will ‘revolutionize’ advertising business
Helsing uses AI to analyze large amounts of sensor and weapons system data from the battlefield.
Pavlo Gonchar | Sopa Images | Lightrocket | Getty Images
European defense technology startup Helsing on Tuesday said that it’s raised 600 million euros ($693.6 million) in a bumper new round of funding.
The investment was led by Prima Materia, the venture capital firm founded by Spotify CEO Daniel Ek and by Shakil Khan, an early investor in the popular music streaming app. Ek is also chairman of Helsing.
Existing investors Lightspeed Venture Partners, Accel, Plural, General Catalyst and Saab also put money in, alongside new investors BDT & MSD Partners.
Defense and the technology behind it have become a hot area for investors lately, amid major global conflicts, including the Ukraine war to Israel-Gaza. Last week saw a further escalation of war in the Middle East as Israel launched a series of airstrikes against Iran.
In 2024, venture funding in Europe’s defense, security and resilience sector reached an all-time high of $5.2 billion, according to a recent report from the NATO Innovation Fund. The sector grew 30% in the past two years, outperforming the broader VC market, which saw a 45% decline over the same period.
Founded in 2021, Helsing sells software that uses artificial intelligence technology to analyze large amounts of sensor and weapons system data from the battlefield to inform military decisions in real time. Last year, the startup also began manufacturing its own line of military drones, called HX-2.
Helsing, which operates in the U.K., Germany and France, said it would use the fresh cash to invest in Europe’s “technological sovereignty” — which refers to attempts to onshore the development and production of critical technologies, such as AI.
“As Europe rapidly strengthens its defence capabilities in response to evolving geopolitical challenges, there is an urgent need for investments in advanced technologies that ensure its strategic autonomy and security readiness,” Ek said in a statement out Tuesday.
Helsing did not disclose its new valuation following the latest financing round, which is subject to “certain approvals,” according to a statement. The firm was previously valued at around 5 billion euros in a 450 million euro funding round led by General Catalyst last year.
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