Google’s Chief Says Breakup Proposal Would Hobble Business
Sundar Pichai, Google's CEO, testified in court against a government proposal to break up the company, arguing it would stifle innovation and reduce investment in research and development. This testimony is part of a three-week hearing following a ruling that Google maintained a search monopoly unlawfully. The government aims to enforce measures such as selling the Chrome browser and sharing search data with competitors, which Pichai claims would threaten Google's technological edge and intellectual property. The case represents a significant test of efforts to curb the power of tech giants, with similar antitrust actions against other companies like Meta, Apple, and Amazon. Pichai defended Google's business practices, asserting its investments in security and innovation make it uniquely capable of leading in the tech industry, particularly in AI-driven products, while expressing skepticism about the viability of other search engines competing without Google's advantages.
Sundar Pichai argued that the government's proposal to break up Google, including selling Chrome and sharing data with rivals, would hinder the company's ability to innovate and invest in new technology, as it would need to share its benefits with competitors.
The court hearing, led by Judge Amit P. Mehta, follows a ruling that Google unlawfully maintained a monopoly in online search, and the remedies proposed by the government could alter the competitive landscape in the tech industry.
The government claims that Google has monopolized the search engine market by paying companies like Apple and Samsung to prioritize its search engine, leading to a significant financial investment in ensuring its prime placement.
Pichai emphasized that Google's investment in Chrome makes it best suited to ensure cybersecurity, and he expressed confidence in Google's capabilities compared to potential future owners of the browser.
The government seeks to make Google share its search data with competitors, which Pichai described as a threat to the company's intellectual property, potentially allowing rivals to reverse-engineer Google's technology.
The legal battle is part of broader efforts to regulate the power of tech giants, with similar antitrust cases against companies like Meta, Apple, and Amazon, aiming to address issues of competition and consumer choice.
Pichai maintained that Google's search engine success is due to its quality and innovation, challenging the notion that competitors could match its capabilities without its strategic advantages.