Alphabet Inc. Class C (GOOGL.US) said selling Chrome is "too extreme" and presented other remedial measures to the U.S. Department of Justice.

According to court documents, tech giant Alphabet Inc. Class C (GOOGL.US) has stated that the Department of Justice's plan to force it to sell the Chrome web browser is "too extreme," and the company has proposed its own remedy to maintain healthy competition in the internet search market. In outlining key points of its proposed remedy, Alphabet Inc. Class C has stated that browser companies like Apple Inc. and Mozilla should continue to freely choose which search engines they believe are most beneficial to users. This would allow browsers to continue providing search services to their users and earn revenue from these partnerships. They have stated that their remedy would provide device manufacturers with additional flexibility to preload multiple search engines and do so independently of preloading search or Chrome loading any Alphabet Inc. Class C applications. The company's proposal also includes "robust mechanisms" to comply with court orders without granting the government broad powers over aspects such as online experience design. Lee-Anne Mulholland, Vice President of External Affairs at Alphabet Inc. Class C, stated in a blog post on Monday, "We strongly disagree with the Department of Justice's ruling on search distribution and will appeal. If the Department of Justice believes Alphabet Inc. Class C's investment in Chrome, our development of artificial intelligence, our web crawling methods, or the development of our algorithms constitute anti-competitive behavior, it could have brought these suits. But it did not." In early August, U.S. District Court Judge Amit Mehta ruled that Alphabet Inc. Class C had violated Section 2 of the Sherman Antitrust Act by "maintaining its monopoly position in two product markets in the United States (general search services and general text advertising) through exclusive distribution agreements." Market Views Analysts at Barclays stated that Alphabet Inc. Class C's proposed remedy addresses about half of the issues related to exclusive breach contracts highlighted in the court's ruling on August 5. The research firm stated that if the court accepts these remedies, Alphabet Inc. Class C's revenue would essentially remain the same, with potential increases in operating income. Alphabet Inc. Class C made a strong argument that many of the Department of Justice's proposed remedies are too harsh, emphasizing that caution is key when drafting any anti-trust remedies, and urged the court to "tread carefully in enhancing consumer welfare, without being too severe." Analysts at Bank of America Corp stated on Monday, "It is expected that Judge Mehta will make a decision on the remedies in August, and we believe this could impact Wall Street's view on Alphabet Inc. Class C's long-term search revenue opportunities. However, we believe potential changes in the leadership of the Department of Justice under the new administration or an appeal decision may affect the direction of the case and lead to settlement." Analysts at JPMorgan believe that, as expected, Alphabet Inc. Class C's proposed remedies are milder compared to those proposed by the Department of Justice. "Ultimately, we believe the final decision next summer by the judge will strike a more balanced approach between the Department of Justice and Alphabet Inc. Class C's remedies and may consider potential impacts on users more heavily."