Alphabet Inc. Class C (GOOGL.US) criticizes the US Department of Justice's "forced sale of Chrome" plan and proposes remedial measures.

date
21/12/2024
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GMT Eight
Alphabet Inc. Class C (GOOGL.US) stated on Friday that the U.S. Department of Justice's plan to force it to sell its web browser is "extreme" and against the law, urging a federal court judge to proceed with caution to avoid stifling innovation and future investments. In a court filing, Alphabet Inc. Class C responded to the Department of Justice's demands and proposed its own remedies. The company stated that the proposal to sell the Chrome browser is not in line with what the company has been deemed illegal by the court, which includes exclusive contracts with browser, smartphone manufacturers, and telecom operators. The company stated in its filing that the court "does not encourage extreme remedies." Alphabet Inc. Class C stated that remedies for anti-competitive behavior "must be of the same type or category as the violation." Last month, the Department of Justice and some states asked Judge Amit Mehta to order Alphabet Inc. Class C to sell its Chrome web browser and make a series of other changes to improve competition in the online search market. Lee-Anne Mulholland, Vice President of Regulatory Affairs at Alphabet Inc. Class C, wrote in a blog post that any remedies should allow competing browsers like Apple Inc.'s Safari to freely engage with search engines they see fit for users. Mehta found that Alphabet Inc. Class C's payments to Apple Inc. and other companies as the default browser provider were illegal. Mulholland stated that Alphabet Inc. Class C's proposal would still allow the company to share revenue with competitors' browsers, but it would also allow for multiple default settings on different platforms. It would allow device manufacturers to pre-install multiple search engines and not require them to use Chrome and Alphabet Inc. Class C search under other Alphabet Inc. Class C apps. The filing submitted by Alphabet Inc. Class C on Friday is its first official response since Mehta earlier this year found its illegal monopoly in the online search and advertising market. The company plans to appeal, but must wait until the case is concluded before doing so. Mulholland wrote, "If the Department of Justice believes Alphabet Inc. Class C's investments in the Chrome browser, or our development of artificial intelligence, web crawling, or algorithms are anti-competitive, then it can bring lawsuits. But that is not the case." A judge has set a lawsuit to be brought in April next year to decide how to address the lack of competition in the industry dominated by Alphabet Inc. Class C, promising to make a final decision by August 2025. A spokesperson for the Department of Justice declined to comment and referred to earlier filings in the case.

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