What's the verdict on Google Search?
In August this year, Google was judged to be stifling competition in the search engine industry through exclusivity deals, as well as its ownership of the Android operating system and the Chrome web browser. In April next year, Google and the US Department of Justice will present what they believe are ideal 'remedies', while a final ruling will be made in August. Regulators in the US have proposed forcing Google to stop making deals with companies such as Apple and Mozilla, while Google's president of government affairs, Kent Walker, branded the approach “a radical interventionist agenda.” A final call has not yet been made.
Does India agree with US lawmakers on this issue?
In January 2022, a group of news publishers in India filed a complaint alleging unfair distribution of advertising revenue from Search. The Indian Competition Commission (CCI) has since conducted a lengthy investigation and final findings and legal rulings on the matter are imminent. That said, the CCI has already fined Google nearly $270 million for its dominant mobile applications and operating systems market in India, signaling an approach largely in line with that of the US and European Union. All these verdicts remain before the courts, as Google has also appealed in India.
How important are Search and Chrome to Google?
Search is Google's core business in terms of revenue. As of the September quarter, Search and related products earned the company $49.4 billion, accounting for the majority of revenue. Chrome, meanwhile, remains the world's largest web browser, with a 68% market share in September. For Google, protecting these two companies is crucial.
What happens if Search is not default?
Google's proposal was to restructure its agreements with Apple, Samsung and others so that Search is not the only option. This means that users can choose any search engine. However, experts say that Search is qualitatively far ahead of its competitors, making it difficult for others to keep pace. However, the advent of generative AI and social media for hyperlocal discovery could challenge traditional search engines, meaning users' searches could have significant differences in what they see as responses.
Does India also have search competitors?
Three years ago, Gujarat-based Qmamu pitched itself as a 'made in India' search engine that could rival Google, but has yet to take off. Experts say search engines have not emerged in India due to Google's dominance: the country has a 98% market share. They say this could be worrying for Google as Android, which is also owned by Google, powers over 95% of smartphones in India. While the advent of generative AI poses a threat to this status quo, Google has no comparable competitor in India for now.