In response to mounting antitrust pressure, Alphabet's Google has proposed changes to its default search engine agreements with major tech companies like Apple. The move is part of an ongoing legal battle over allegations that Google unfairly dominates the online search market.

Proposed Adjustments

Google’s proposals include revising revenue-sharing agreements with partners to allow more flexibility. Notably, the company suggested enabling partners to revisit their choice of default search engine annually. Additionally, Google is considering making agreements non-exclusive and unbundling its Play Store from its Chrome browser and search engine for Android devices.

These measures aim to address a U.S. District Judge Amit Mehta's ruling in August, which found Google guilty of maintaining an illegal monopoly in online search. Judge Mehta highlighted that Google’s agreements provide an unseen advantage by preloading its search engine on most U.S. devices, making it difficult for competitors to thrive.

Government's Counterproposal

In stark contrast, the U.S. Department of Justice (DOJ) has recommended more aggressive remedies, including forcing Google to end revenue-sharing contracts, sell its Chrome browser, and potentially divest its Android operating system. Prosecutors argue that such measures are necessary to restore competition and prevent Google from leveraging its dominance in search to monopolize artificial intelligence innovations.

Google’s search engine currently accounts for approximately 90% of global online searches, according to Statcounter. Revenue-sharing agreements, such as Google's estimated $20 billion payment to Apple in 2022, are crucial for many companies, including independent browser developers like Mozilla. Critics, including Kamyl Bazbaz from DuckDuckGo, claim that Google’s proposed changes would largely preserve the status quo, failing to restore fair competition.

A Balancing Act

Google has urged the court to proceed cautiously, citing concerns about stifling innovation in a rapidly evolving digital landscape, particularly with advancements in artificial intelligence. The tech giant’s legal filing argues that antitrust remedies should avoid hindering technological progress and should instead focus on fair distribution practices.

Looking Ahead

The stage is set for a critical trial in April, where Judge Mehta will consider both Google’s and the government’s proposals. Prosecutors are expected to call witnesses from industry leaders like OpenAI, Microsoft, and AI startups to demonstrate the necessity of comprehensive remedies. This landmark case could reshape the digital search and AI landscape, determining whether Google must loosen its grip on the market to foster fair competition.