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TechCheck

Impact of a Google Chrome Spin-off 11/19/24

TechCheck

CNBC

Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.856 Ratings

🗓️ 19 November 2024

⏱️ 6 minutes

🧾️ Download transcript

Summary

Shares of Alphabet moved higher today despite reports that the Justice Department is planning to force a sale of the Google Chrome browser. It’s part of the government’s efforts to limit Google’s monopoly in search, but could it end up hindering the big tech firm’s position in the AI race too?

Transcript

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0:00.0

Shares of Google parent company Alphabet ticking higher today despite a report that the DOJ will call for Google to sell off its Chrome browser as part of its search monopoly remedies.

0:10.4

But could that end up limiting Google in the AI race as well?

0:13.8

Deirdre Bosa has more than the potential fallout for today's tech check. How is it all connected, Deirdre?

0:19.1

Well, first there, as you mentioned, Google shares, yes, quickly recovered from those

0:23.0

headlines last night, slightly higher this morning, suggesting that investors don't

0:27.0

think a Chrome sale is actually going to happen, or at least that it's a long way off.

0:31.0

And there are variables like appeals and a new administration, by the way, that will factor

0:35.8

in.

0:36.3

But a Chrome breakoff would have implications

0:38.3

for Google's position in the Gen A.R. Arms race, especially as this race moves into the era of

0:44.3

agents or applications that are built on top of frontier models. Now, key to that next phase is

0:49.7

an ecosystem of data synergy across products. You're looking at that flywheel here, and ecosystem

0:56.0

lock-in. All of these elements that come together in Google Chrome. For example, when you log

1:00.8

into Chrome using your Google account, it automatically syncs your browsing history, calendar

1:05.3

appointments, YouTube recommendations, even your Google Maps locations across all of your devices. So an AI agent would

1:12.9

theoretically draw on that full suite of data to build a highly personalized and unified experience.

1:19.4

The more unified, the better and more effective that's going to be. Now, if you break out Chrome,

1:23.2

you break that synergy, potentially giving an edge to other platforms like Microsofts or

1:28.1

Apple's that have their own ecosystems. There's also, that's also where this potential remedy

1:33.4

misses its mark. Instead of leveling the playing field for smaller search rivals, it would

1:39.1

actually hand big tech even greater lock-in, players like Apple and Microsoft. Now Google didn't respond to specific

1:45.3

proposals, but did say in a statement, the DOJ continues to push a radical agenda that goes

...

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