Sundar Pichai led Google awaits a crucial ruling from US District Court Judge Amit Mehta, on what ‘remedies’ to impose after last year’s landmark decision that found the tech giant maintained an illegal monopoly in online search.
US government attorneys are pushing for Google to divest its Chrome browser, arguing that artificial intelligence could further strengthen Google’s dominance as the primary gateway to the internet. The court’s decision is expected by the end of the current month.
On August 12, a leading AI company, Perplexity AI offered a whopping US $34.5 billion offer to acquire Google’s popular Chrome web browser.
- The offer was nearly double than Perplexity’s own $18 billion valuation in its recent funding round.
- CEO Aravind Srinivas stated in a letter of intent that the proposal aims to serve the public interest by placing Chrome with an independent operator focused on openness, continuity, and consumer protection.
- The given letter positions the move as a direct antitrust remedy, which showcases Chrome browser an unsaid leader in the search engine domain.
Analysts Question Perplexity’s Intentions
Baird Equity Research analysts believe the offer undervalues Chrome and should not be taken seriously. They suggest:
- Perplexity, which already has its own competing browser, may be trying to spark competing bids.
- The company could be aiming to influence the judge’s upcoming decision in the antitrust case.
- An independent browser such as Chrome could help Perplexity gain a significnatly higher browser market share.
Google has urged Judge Mehta to reject the divestment proposal, calling it excessive and beyond the scope of the case.
- Google’s leading attorney John Schmidtlein pointed out that over 80% of Chrome users are outside the US, meaning such a move would have global consequences. He warned that any divested version of Chrome would be ‘a shadow of the current Chrome’, harming user experience.
As per popular tech experts, forcing a sale or banning default agreements would:
- Hurt future innovation
- Disadvantage smaller players to exist and play fair
- Lead to worse products for users, considering AI powered browsing would diminish the natural search engine results
The debate over Chrome’s future comes as rivals like Microsoft, ChatGPT, and Perplexity integrate generative AI into their search and browsing tools. Google is heavily investing in AI, weaving it into search, Chrome, and other online services. The potential loss or weakening of Chrome could shift the competitive landscape in search and AI-powered browsing.
Key Takeaways
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Perplexity AI has offered $34.5 billion to acquire Chrome amid US antitrust proceedings.
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Judge Amit Mehta will decide by month’s end whether Google must divest Chrome.
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Analysts say Perplexity’s bid may be more about strategy than acquisition.
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Google argues that Chrome divestiture would harm users and innovation.
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The case is unfolding as AI becomes a central factor in online search competition.