US Govt Calls for Breakup of Google and Chrome

FILE - The Google building is seen in New York, Feb. 26, 2024. (AP Photo/Seth Wenig, File)
FILE - The Google building is seen in New York, Feb. 26, 2024. (AP Photo/Seth Wenig, File)
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US Govt Calls for Breakup of Google and Chrome

FILE - The Google building is seen in New York, Feb. 26, 2024. (AP Photo/Seth Wenig, File)
FILE - The Google building is seen in New York, Feb. 26, 2024. (AP Photo/Seth Wenig, File)

The US government late Wednesday asked a judge to order the dismantling of Google by selling its widely used Chrome browser in a major antitrust crackdown on the internet giant.
In a court filing, the US Department of Justice urged a shake-up of Google's business that includes banning deals for Google to be the default search engine on smartphones and preventing it from exploiting its Android mobile operating system, reported AFP.
Antitrust officials said in the filing that Google should also be made to sell Android if proposed remedies don't prevent the tech company from using its control of the mobile operating system to its advantage.
Calling for the breakup of Google marks a profound change by the US government's regulators, which have largely left tech giants alone since failing to break up Microsoft two decades ago.
Google is expected to make its recommendations in a filing next month and both sides will make their case at a hearing in April before US District Court Judge Amit Mehta.
Regardless of Judge Mehta's eventual decision, Google is expected to appeal the ruling, prolonging the process for years and potentially leaving the final say to the US Supreme Court.
The case could also be upended by the arrival of President-elect Donald Trump to the White House in January.
His administration will likely replace the current team in charge of the DOJ's antitrust division.
The newcomers could choose to carry on with the case, ask for a settlement with Google, or abandon the case altogether.
Trump has blown hot and cold in how to handle Google and the dominance of big tech companies.
He has accused the search engine of bias against conservative content, but has also signaled that a forced break up of the company would be too large a demand by the US government.
- Too extreme? -
Determining how to address Google's wrongs is the next stage of the landmark antitrust trial that saw the company in August ruled a monopoly by Judge Mehta.
Google has dismissed the idea of a breakup as "radical."
Adam Kovacevich, chief executive of industry trade group Chamber of Progress, said the government's demands were "fantastical" and defied legal standards, instead calling for narrowly tailored remedies.
The trial, which concluded last year, scrutinized Google's confidential agreements with smartphone manufacturers, including Apple.
These deals involve substantial payments to secure Google's search engine as the default option on browsers, iPhones and other devices.
The judge determined that this arrangement provided Google with unparalleled access to user data, enabling it to develop its search engine into a globally dominant platform.
From this position, Google expanded its tech and data-gathering empire to include the Chrome browser, Maps and the Android smartphone operating system.
According to the judgment, Google controlled 90 percent of the US online search market in 2020, with an even higher share, 95 percent, on mobile devices.
The US government currently has five cases pending against big tech over antitrust concerns after the Biden administration adopted a tough stance on reining in the dominance of the companies.
If carried through by the Trump administration, the cases against Amazon, Meta, and Apple, as well as two against Google, could take years to litigate.



After Years of Survival, China’s Huawei Returns to Revenue Peak 

Logo of Huawei is seen in front of the local offices of Huawei in Warsaw, Poland January 11, 2019. (Reuters)
Logo of Huawei is seen in front of the local offices of Huawei in Warsaw, Poland January 11, 2019. (Reuters)
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After Years of Survival, China’s Huawei Returns to Revenue Peak 

Logo of Huawei is seen in front of the local offices of Huawei in Warsaw, Poland January 11, 2019. (Reuters)
Logo of Huawei is seen in front of the local offices of Huawei in Warsaw, Poland January 11, 2019. (Reuters)

China's Huawei is expected to claim triumph over US sanctions at its upcoming annual results, bolstered by its software push, progress in chips and booming smart-driving technology business that has helped it move out of "survival mode".

The company is set to confirm that it took 860 billion yuan ($118 billion) in revenues last year, just shy of its 2020 peak of 891 billion yuan, before chip stockpiles dwindled and US restrictions cut consumer business revenues in half. Its chairman disclosed its 2024 revenue in February.

It will also report full-year profit. In October, it posted a 13.7% drop in nine-month net profit.

Huawei's executives have previously said Washington's moves pushed the company into "survival mode", driving it to explore new business lines that have largely involved creating products that can serve as alternatives to Western technology and partnering with local Chinese authorities and government-backed firms.

The company has in past months struck a more confident tone, with founder Ren Zhengfei telling Chinese President Xi Jinping in May that concerns China had about a lack of homegrown chips and operating systems had eased.

Huawei has not disclosed in detail its revenue drivers, but has said that its consumer business has returned to growth while its foray into autos has developed rapidly.

The company likely shipped over 45 million phones in 2024, up by 25% or more on a year earlier, though yield rates on chips remain a constraint, according to consultancy Isaiah Research.

"Huawei has already shown incredible resilience in the face of this national state-led effort, and this process has arguably forced Chinese firms across the IT stack to become more innovative and collaborative," said Paul Triolo, a partner at DGA-Albright Stonebridge Group.

"This is one of the legacies of Huawei's re-emergence as a technology powerhouse."

Huawei declined to comment.

In the wake of US sanctions, Huawei moved into exploring areas such as building 5G infrastructure for mines and supplying energy storage systems to data centers.

Cut off from Google's Android and Oracle, it built its own operating system HarmonyOS, which it says is running on over a billion devices, as well as an internal software management system it calls "MetaERP".

Banned from using US semiconductor technology, it has created its own advanced chips including ones that compete with top artificial intelligence chipmaker Nvidia's products.

The company has also become a prominent supplier of advanced autonomous driving technology, working with state-owned automakers to revive themselves as viable electric vehicle makers.

Huawei has worked with Dongfeng Motor-backed Seres to sell Aito-branded cars, with sales more than tripling last year.

Its best-selling models M7 and M9 are equipped with Huawei's advanced driver assistance systems and sold in Huawei's showrooms nationwide.

There are similar projects with Chery, BAIC, JAC Group and SAIC Group.

Going forward, the company has said it wants to integrate artificial intelligence into its industrial communications services and to build out its software systems on connected devices, according to state media.

Huawei has also signaled it intends to compete more aggressively in overseas markets for its smartphones, having launched its foldable Mate XT smartphone in Malaysia in February in a glitzy event.

Without full access to Android, it is unlikely to regain its former position in Western consumer markets, though its data infrastructure presence has grown in areas such as the Middle East, Triolo said.

"Huawei's international presence will be more of a patchwork affair, but in some areas, like an alternative AI stack, it could eventually dominate in key markets."