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US Justice Dept. Pushing Google To Spin Off Chrome Browser Biz: Court Filing
November 22, 2024
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In a court filing Wednesday, U.S. Department of Justice(DOJ) argued that Google should divest its Chrome browser to help break up the company’s illegal monopoly in online search, as the antitrust case against the internet giant escalates in the U.S District Court of the District of Columbia. If the court sides with DOJ, such a decision could fundamentally change one of the world’s largest businesses and alter the current structure of the internet.

It's up to District Court judge Amit Mehta to decide what Google’s final punishment will be. That phase of the trial is expected to kick off sometime in 2025. The court ruled in August that Google was an illegal monopoly for abusing its power over the search business. The judge also took issue with Google’s control of various gateways to the internet and the company’s payments to third parties in order to retain its status as a default search engine.

Google’s ownership of Android and Chrome as key distribution channels for its search business, pose “a significant challenge” to apply remedies for making the search market competitive, the DOJ suggested in the latest court filing.

Other remedies proposed by the DOJ to address the search giant’s monopoly, include the spinning off of its Android mobile operating system. The court filing noted that Google and other partners might be against that spin-off and suggested strict remedies, including not using Android to disadvantage its search competitors.

The DOJ also argued that the company should be prohibited from entering into exclusionary third-party contracts with browser or phone companies, such as Google’s contract with Apple, which is to be the default search engine on all Apple products. Prosecutors also argued that Google should license its search data along with ad click data to rivals.

Prosecutors suggested conditions that will prohibit Google from entering the browser market again for five years after the company spins off Chrome. And that after the Chrome sale, Google shouldn’t acquire or own any rival ad text search, query-based AI product, or ads technology. The filing outlined provisions for publishers to opt out of Google using their data to train AI models.

The DOJ's suggestions, if accepted by the court, could hurt Google's progress in its competition with artificial intelligence companies like OpenAI, Microsoft, Anthropic and xAI. The search giant is set to file its response to DO's filing next month.

“DOJ’s wildly overbroad proposal goes miles beyond the Court’s decision. It would break a range of Google products -- even beyond Search -- that people love and find helpful in their everyday lives,” president of global affairs and Google’s chief legal officer Kent Walker said in a blog post.

Walker argues that “DOJ’s approach would result in unprecedented government overreach that would harm American consumers, developers, and small businesses -- and jeopardize America’s global economic and technological leadership at precisely the moment it’s needed most.”

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Trump Threatens Tariffs, After EU Hit Google With $3.5B Antitrust Violations

The European Union has fined Google $3.46 billion for abusing its dominant position in the digital advertising market, accusing the company of creating inherent conflicts of interest by controlling both the buy and sell sides of online advertising. In response, US President Donald Trump has threatened to initiate a Section 301 trade investigation, which could lead to retaliatory tariffs, calling the fine "unfair" and "discriminatory" against American companies.

The European Commission announced the $3.46 billion fine on Friday, stating that Google's control of both the buy and sell sides of the online advertising market created "inherent conflicts of interest." The investigation, which began in 2021, found that Google favored its own advertising services, violating EU competition laws Regulators have ordered Google to end its "self-preferencing practices" and resolve these conflicts of interest, with the company having 60 days to propose a remedy.

The Commission noted that structural remedies, such as a forced divestiture of parts of its adtech business, remain a possibility if Google's proposals are inadequate.

President Trump reacted swiftly on Truth Social, calling the fine "unfair" and "discriminatory" towards US companies. He claimed the $3.5 billion penalty was taking money that would otherwise go to "American Investments and Jobs" and stated, "Very unfair, and the American Taxpayer will not stand for it!" Trump explicitly threatened to start a Section 301 proceeding to "nullify the unfair penalties being charged to these Taxpaying American Companies."

A Section 301 investigation paves the way for Washington to impose import taxes under a fortified legal basis through the Commerce Department, and the president has a lot of latitude to issue tariffs over unfair trade practices under the provision. Section 301 is the same trade tool Trump used to justify tariffs on China starting in 2018.

Trump also referenced a previous $17 billion fine against Apple, suggesting it should be reversed He claimed the total fines against Google from the EU now amount to $16.5 billion, including the latest penalty.

The fine marks the fourth antitrust penalty for Google from the EU The investigation focused on Google's dominance in online display advertising, where personalized banners and text ads appear on websites. The EU has previously warned that past penalties and requirements have not effectively curbed anti-competitive practices.

Google has rejected the decision, calling it "wrong" and stating it would appeal, arguing that the fine is unjustified and that the required changes would harm European businesses.

The company maintains that providing services for both ad buyers and sellers is not inherently anticompetitive and that there are more alternatives available than ever before.

The timing of Trump's threat is notable, as it comes just a day after he hosted Google's CEO Sundar Pichai, co-founder Sergey Brin, Mark Zuckerberg and other tech leaders at a White House dinner to discuss artififical intelligence implications with First Lady Melania Trump. This confrontation adds tension to a recently agreed-upon US-EU trade deal aimed at reducing US tariffs on EU imports.

“The European Union must stop this practice against American Companies, IMMEDIATELY!” Trump wrote. The White House did not immediately respond to a request for comment.

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Trump Rebrands US Dept. Of Defense To Dept. Of War, Restoring Its Pre-1947 Name

President Donald Trump signed an executive order on Friday, formally changing the name of the Department of Defense to the Department of War, a move he framed as a restoration of American military strength and a rejection of what he termed "woke" policies within the Pentagon.

The rebranding, which requires congressional approval for permanence, was announced in a ceremony in the Oval Office, where Trump, flanked by Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff Gen. Dan Caine, stated the change was necessary because the U.S. "never fought to win" under the previous name, attributing past military stalemates to political correctness.

Hegseth declared the change was about "restoring the warrior ethos" and fighting "to win, not to lose," while Caine's remarks were not detailed in the provided sources.

"Really it has to do with winning. We should have won every war. We could have won every war, but we really chose to be very politically correct or wokey and we just fight forever," Trump said, flanked by Hegseth and Gen. Caine. "We had it, and we won World War I, we won World War II, we won everything before, and as I said, we won everything in between," Trump added. "And we were very strong. But we never fought to win. We just didn’t fight to win. We would have won every one of those wars quickly, but they went a route that I think was probably politically correct, but not correct for our nation. So I think the Department of War sends a signal." He also stated, "We won the first world war, second world war- everything before that and in between and then we decided to go woke and changed the name to 'Department of Defense', so we're going 'Department of War'"

Hegseth on his part said, "This name changing is not just about renaming, it is about restoring. Words matter... Restoring the warrior ethos, restoring victory and clarity, restoring intentionality... The War Department is going to fight decisively, not endless conflicts. It's going to fight to win, not to lose. We are going to go on offence, not just defence; maximum lethality, not tepid legality; violent effect, not politically correct. We are going to raise up warriors, not just defenders"  He also stated, "We won World War I and World War II not with the Department of Defence but with the War Department"

The Department of War was established by President George Washington in 1789 and served as the primary agency for the U.S. Army until 1947. In that year, President Harry Truman signed the National Security Act, which merged the Department of the Army (formerly the Department of War), the Department of the Navy, and the newly created Department of the Air Force into the National Military Establishment. This entity was renamed the Department of Defense in August 1949.

The recent rebranding is part of a broader effort by the Trump administration and Defense Secretary Hegseth to reverse policies deemed "woke" or politically correct, including reversing the renaming of military bases from Confederate names and renaming a Navy ship previously named after gay rights activist Harvey Milk.

The White House has already updated its social media and the Pentagon's website to reflect the new name, with the domain changing to "war.gov." The move has been met with enthusiasm from some on the right, but skepticism and scorn from others.

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500th Falcon Landing: SpaceX Launches Starlink 10-57 Mission

SpaceX successfully launched the Starlink 10-57 mission on Friday, Sept. 5, deploying 28 Starlink satellites into low Earth orbit from Launch Complex 39A at NASA's Kennedy Space Center in Florida.

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"Falcon 9 touchdown on the Just Read the Instructions droneship, completing the 500th launch and landing of an orbital class rocket," SpaceX wrote on X.

B1069 had previously flown on missions including CRS-24, Eutelsat HOTBIRD 13F, and 22 prior Starlink missions. This landing was the 135th recovery for the "Just Read the Instructions" drone ship.

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