Google must divest Chrome to restore competition in online search, DOJ says

Reuters11-21 11:56
UPDATE 1-Google must divest Chrome to restore competition in online search, DOJ says

DOJ seeks changes to Google's search business practices

Proposals include ending exclusive deals with Apple, others

Trial set for April; Google plans to appeal final ruling

Recasts throughout with details from court filing

By Jody Godoy

Nov 20 (Reuters) - Alphabet's Google GOOGL.O must sell its Chrome browser to restore competition in the online search market it dominates, and take a broad range of other corrective actions, including sharing data and search results with competitors, U.S. prosecutors argued to a judge on Wednesday.

Such changes would essentially result in Google being highly regulated for 10 years, subjecting it to oversight by the same Washington federal court that ruled the company maintained an illegal monopoly in online search and related advertising.

Google controls about 90% of the online search market and 95% on smartphones.

Court papers filed Wednesday night expand on an earlier outline for what prosecutors argued would dilute that monopoly. Google called the proposals radical at the time, saying they would harm U.S. consumers and businesses and shake American competitiveness in AI. The company has said it will appeal.

The U.S. Department of Justice and a coalition of states want U.S. District Judge Amit Mehta to end exclusive agreements in which Google pays billions of dollars annually to Apple AAPL.O and other device vendors to be the default search engine on their tablets and smartphones.

Google will have a chance to present its own proposals in December.

Mehta has scheduled a trial on the proposals for April, though President-elect Donald Trump and the DOJ's next antitrust head could step in and change course in the case.

(Reporting by Jody Godoy; Editing by Rod Nickel and Christopher Cushing)

((Jody.Godoy@thomsonreuters.com;))

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