AI company Perplexity proposes a bid of $34.5 billion for Google's Chrome browser, in the midst of an antitrust case
In the world of technology, the antitrust investigation into Google's dominance in internet search and digital advertising is reaching a critical juncture. U.S. District Judge Amit Mehta is expected to rule soon on remedies to address Google's monopoly, with potential structural changes on the horizon.
One of the options being considered is the divestiture of Google's Chrome web browser. The Department of Justice (DOJ) is advocating for bold structural changes, including spinning off Chrome or Android to break Google's control over search. However, Google is pushing for less drastic measures, focusing on restricting some exclusive deals while maintaining its core assets intact.
The potential divestiture of Google Chrome has gained attention recently, with Perplexity AI, a fast-growing player in the artificial intelligence sector, offering $34.5 billion to acquire the browser. This offer, however, falls short of Chrome's estimated valuation of over $50 billion.
The proposal for Chrome's divestiture argues that the browser should be operated by an independent entity committed to continuity, openness, and consumer protection. This move could potentially level the playing field in the browser market, where Chrome currently holds a 67.9% global market share, according to StatCounter.
Google, on the other hand, has opposed any divestment, stating that it would harm innovation and diminish product quality. The company argues that its integrated ecosystem is crucial for delivering a seamless user experience.
The antitrust investigation into Google's dominance is not just limited to the U.S. Türkiye has also launched an antitrust investigation into Google's AI-powered ad campaign. Last year, a landmark ruling found Google illegally monopolizing segments of the digital advertising market, with potential breakup implications for its digital advertising units.
Perplexity AI, founded in 2022, is backed by notable investors such as Nvidia and SoftBank. The company operates a competing browser, adding another layer of competition in the market if Google were to divest Chrome.
As the antitrust ruling approaches, the technology industry watches with bated breath. The decisions will likely trigger a protracted appeals process, potentially lasting over a year or more, delaying immediate business changes. Regardless, the potential structural changes could significantly reshape the tech landscape, particularly in the areas of internet search, digital advertising, and web browsing.
[1] Source: Reuters, The Wall Street Journal, CNBC [2] Source: The Verge, Bloomberg
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