Google's grip on search at risk as US govt pushes for Chrome sell-off

If 2024 was a turbulent year for Google, 2025 is shaping up to be just as challenging. In the ongoing antitrust trial against the tech giant, the US Department of Justice (DOJ) has reaffirmed its demands for Google to sell off its Chrome browser, the world's most popular web browser with 3.45 billion users. 

The proposal, filed on March 7, requires Google to "promptly and fully divest Chrome, along with any assets or services necessary to successfully complete the divestiture, to a buyer approved by the plaintiffs in their sole discretion, subject to terms that the court and plaintiffs approve”. Additionally, Google must stop paying partners for preferential treatment of its search engine.

The DOJ first requested the sale of Chrome last November under the Biden administration as part of a broader effort to address Google's alleged search market monopoly. Despite Google's efforts to influence the Trump administration, including donating US$1 million to Trump's inauguration fund and praising Trump, the DOJ has maintained its stance. The Trump administration has introduced a new legal strategy that relaxes some demands while preserving the critical requirement for Chrome's divestiture.

However, it wasn't all bad news for Google. The DOJ has dropped its proposal to force Google to sell its AI investments, including a stake in Anthropic (an AI safety and research company), allowing Google to maintain its position in the AI race. Instead, Google must notify the government before making new AI investments. The demand to divest from Android has also been dropped, but stricter measures will be implemented to prevent preferential treatment of Google's search and AI services within the Android ecosystem.

The DOJ's demands could significantly impact Google's advertising business and search advertising. Ori Gold, CEO and co-founder Bench Media, believes that the shift could create a healthier and more competitive ecosystem.

"The DOJ’s move is a necessary step toward breaking Google’s grip on search and advertising," says Gold. "We have seen this before when Microsoft was forced to decouple Internet Explorer, and competition thrived. The same will happen here. A more fragmented search market will give advertisers greater choice, driving budgets toward Microsoft, Apple, retail media, and independent ad tech. Meanwhile, Google, publishers reliant on its traffic, and agencies built around its stack will struggle to adapt. In the long run, this shift will lower costs, spark innovation, and create a healthier, more competitive ad ecosystem where brands finally have real alternatives to Google.”

Currently, search advertising accounts for about 56.93% of Google's advertising revenue, a significant portion now at risk as rival search engines like Bing, DuckDuckGo, and emerging AI-powered engines gain traction. 

Vitya Vijayan, global head of search & social at M&C Saatchi Performance, notes that this shift could democratise the search market, potentially altering pricing dynamics and benefiting advertisers through increased competition. 

"However, the disruption of Chrome and Google's integration may limit advertisers' ability to target users accurately in search and impact the effectiveness of other Google advertising products," says Vijayan. "Google may pivot more towards YouTube, which has seen substantial growth in ad revenue and subscription services, offering a potential offset to losses in search advertising."

Nikhil Lai, senior analyst at Forrester, suggests that an independent Chrome would be free to make user-centric decisions rather than advertiser-centric ones. "For example, Google’s decision to allow websites to collect personal data from users browsing Chrome in 'incognito mode' could be overturned in favour of more secure, private browsing," says Lai. "So, too, could Google’s decision not to deprecate third-party cookies in Chrome, which has put Chrome out of step with every other browser and clearly prioritised advertisers’ status quo over audiences’ privacy. A more user-centric Chrome would weaken advertisers’ signals within Google’s walled garden, resulting in less precise customer understanding and audience targeting."

Currently, the DOJ is pursuing two major anti-monopoly cases against Google. The first focuses on Google’s dominance in the search engine market, arguing that Google uses anti-competitive practices to limit consumer choice and harm competition. The second targets Google’s control over digital advertising technology, claiming that Google holds a monopoly by controlling both the buying and selling of ads through platforms like Google Ads and Google Ad Manager.

As the case remains unresolved, two more hearings are scheduled for next month. Google is likely to oppose the DOJ’s proposed remedies and appeal the court's decision. If Google wins, the DOJ's proposed remedies will be ineffective. However, if the appeal fails, one of the biggest breakups of a company in modern history will occur, significantly changing the face of internet search and browser competition.