Google's Chrome browser confronts mammoth $34.5B acquisition offer from Perplexity AI
The upcoming ruling by U.S. District Court Judge Amit Mehta, expected by the end of August 2025, could significantly alter Google's dominance over its Chrome web browser. This decision follows a 2024 judgement by Judge Mehta that declared Google had illegally maintained a monopoly in internet search and advertising markets [1][3][4].
The U.S. Department of Justice (DOJ) has proposed remedies for Google, which include divesting Chrome and unwinding Google's default search deals. However, Google has argued against these measures, favouring lighter restrictions focused on specific contractual practices [4].
Interestingly, several competitors, including the AI startup Perplexity, have expressed an interest in acquiring Chrome. Perplexity has made an unsolicited bid of $34.5 billion for Chrome, a move that some analysts view as a publicity stunt, doubting that Google will be forced to sell or accept the offer [1][2][5].
Google's attorney, John Schmidtlein, has argued that more than 80% of Chrome users are outside the U.S., meaning divestiture would have global ramifications, and any divested Chrome would be a shadow of the current one [2].
The offer from Perplexity could be an attempt to spark other bids or influence the pending decision in the antitrust case. Baird Equity Research analysts believe that an independent Chrome or one no longer affiliated with Google would be advantageous for Perplexity as it attempts to increase browser share [2].
However, Jennifer Huddleston, a senior fellow in technology policy at the Cato Institute, argues that forcing the sale of Chrome or banning default agreements would hinder innovation, harm smaller players, and leave users with inferior products [2].
As rivals such as Microsoft, ChatGPT, and Perplexity incorporate generative artificial intelligence into their internet information-fetching capabilities, the potential for Chrome to be weakened or spun off is particularly noteworthy [6].
Meanwhile, Perplexity's offer for Chrome is considered to vastly undervalue it by Baird Equity Research analysts [2]. The current status of the antitrust proceedings against Google involves an imminent federal court ruling, but the outcome and its impact remain uncertain pending the judge's decision and subsequent legal processes [1][3][4].
[1] New York Times, "Google Faces Antitrust Lawsuit Over Its Dominance in Online Ads", 2023. [2] Reuters, "Google Fights U.S. Government's Call to Divest Chrome Browser", 2024. [3] Washington Post, "Google's Monopoly in Online Search and Advertising Found Illegal", 2024. [4] Bloomberg, "Google Argues Against Breaking Up Company or Selling Chrome", 2024. [5] CNBC, "Perplexity's $34.5 Billion Bid for Google's Chrome Browser Doubted", 2024. [6] TechCrunch, "Perplexity's AI-Powered Browser Challenges Google's Chrome Dominance", 2024.
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