Google Wins Antitrust War
Google just won the antitrust war. Yes, it might have lost the initial skirmish, having had its search business branded a monopoly, but it couldn’t have asked for a kinder ruling on how to deal with that monopoly. Google essentially got what it wanted, as the judge said he had accepted “in full” Google’s proposed remedies, with a few modifications, while accepting just a few of the government’s. You have to wonder whether Google will continue with its plans to appeal—maybe leaving well enough alone is the smart option. (See our detailed coverage here and check out a special episode on The Information’s TITV tonight with Jessica Lessin and Amir Efrati).
Most importantly, Judge Amit Mehta rejected the most drastic of the government’s proposals, that Chrome and maybe Android be spun off and that Google not be allowed to pay for guaranteed distribution of its search engine. Forcing the divestiture of Chrome or Android was an overreach on the part of the government, the judge said (a bit of a rap on the knuckles there). And preventing Google from paying for distribution could, he said, cripple many other companies (such as Mozilla) and hurt consumers. (This story of ours from December is relevant.) Mehta is surely not thinking of Apple when he talks about the companies that could be crippled, but the folks at Apple will surely be pleased that the $20 billion the company gets from Google every year for guaranteed placement of Google search on Safari seems likely to continue, albeit in a modified way.