Tech Company Proposes Purchase of Google's Chrome Browser for a Whopping $34.5 Billion to Perplexity AI
The antitrust case against Google, focusing on its dominance in online search and related markets, is at a critical juncture. US District Judge Amit Mehta is expected to soon rule on remedies following a landmark decision last year that confirmed Google's monopoly status in internet search and digital advertising [1].
One of the most significant potential outcomes under consideration is the forced divestiture (sale) of Google's widely used Chrome browser, which plays a crucial role in Google's search business and advertising revenue. The idea of divesting Chrome is unprecedented and has garnered attention from tech companies and investors, including a reported unsolicited $34.5 billion offer from Perplexity, an AI-focused startup [2][4].
Perplexity, based in San Francisco, already has a browser that competes with Chrome [4]. Market analysts view a forced breakup as a major potential shift that could reshape browser and search markets, although it would pose practical issues such as managing user data and maintaining cybersecurity [2][4].
Google, on the other hand, is urging Judge Mehta to reject the divestment of Chrome, contending that the United States has exceeded the scope of the suit [5]. Schmidtlein, Google's attorney, argues that more than 80% of Chrome users are outside the United States, implying that divestiture would have global ramifications [5]. He also contends that a divested Chrome would be a shadow of the current one [5].
Jennifer Huddleston, a senior fellow in technology policy at the Cato Institute, states that forcing the divestiture of Chrome would hinder innovation, disadvantage smaller players, and result in worse products for users [5]. However, Baird Equity Research analysts believe Perplexity's offer undervalues Chrome and should not be taken seriously [5].
The proposal aims to place Chrome with a capable, independent operator focused on continuity, openness, and consumer protection [4]. The potential weakening or spinoff of Chrome is occurring as rivals like Microsoft, ChatGPT, and Perplexity incorporate generative artificial intelligence (AI) into their services for fetching internet information in response to user queries [5].
In a related development, in the Epic Games antitrust case against Google involving the Google Play store, courts have already ruled that Google holds monopoly power and imposed injunctions requiring Google to allow developers more freedom regarding app distribution and billing options [3][5]. This case demonstrates the judiciary’s active approach to addressing Google’s competitive practices in digital ecosystems [3][5].
In conclusion, the court is poised to make a landmark decision that could potentially force Google to divest its Chrome browser, with significant implications for Google and the tech industry as a whole [1][2][4]. The outcome of this decision could reshape the browser and search markets, and it will be interesting to see how Google and its competitors respond.
[1] The Washington Post. (2025, August 1). Judge expected to rule on remedies for Google antitrust case. [online] Available at: https://www.washingtonpost.com/technology/2025/08/01/judge-expected-rule-remedies-google-antitrust-case/
[2] Bloomberg. (2025, July 28). Perplexity Makes Unsolicited $34.5 Billion Offer for Google's Chrome Browser. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-28/perplexity-makes-unsolicited-34-5-billion-offer-for-google-s-chrome
[3] Reuters. (2025, June 25). US judge orders Google to change Play Store practices to settle Epic Games lawsuit. [online] Available at: https://www.reuters.com/technology/us-judge-orders-google-change-play-store-practices-settle-epic-games-lawsuit-2025-06-25/
[4] The Verge. (2025, July 29). Perplexity offers to buy Google's Chrome browser for $34.5 billion. [online] Available at: https://www.theverge.com/2025/07/29/22640950/perplexity-google-chrome-browser-offer-buyout
[5] CNBC. (2025, August 3). Google urges judge to reject divestiture of Chrome browser, argues DOJ exceeded scope of suit. [online] Available at: https://www.cnbc.com/2025/08/03/google-urges-judge-to-reject-divestiture-of-chrome-browser-argues-doj-exceeded-scope-of-suit.html
- The potential divestiture of Google's Chrome browser, which is under consideration due to its significant role in Google's search business and advertising revenue, has garnered attention from not only tech companies like Perplexity but also finance investors, with reports of a $34.5 billion offer from the AI-focused startup.
- If forced to sell Chrome, Google argues that the United States has overstepped the boundaries of the antitrust suit, as more than 80% of Chrome users are based outside the US, implying that divestiture would have global ramifications.
- The technology industry and general news are closely monitoring the court's decision about the forced divestiture of Chrome, as this could potentially reshape both the browser and search markets, particularly with rivals like Perplexity and Microsoft incorporating generative AI into their services.
