In a rare development in the normally complacent tech industry, Google’s monopoly is under fire. The Department of Justice (DOJ) has finally moved against the tech giant in a big way. This ongoing legal fight throws into uncertainty how the company—as well as its hugely popular web browser, Chrome—will be structured in the future. In the face of all these challenges, Yahoo has dramatically stepped up Chrome acquisition efforts. They’re reportedly planning a big return to the browser market, a arena they exited over a decade ago.
After years of investigation, the Department of Justice has brought an antitrust case against Google. They argue that the search behemoth has oppressive monopolist power in the overall search engine marketplace. In the last few months, the prosecution has started to hint that a breakup of Google may be the best effective remedy. This possible separation would have resulted in the sale of Chrome. This third party web browser is currently responsible for nearly 60% of all search queries. Such a move would fundamentally alter the world of internet browsing and search experience.
The Historical Context of Google and Yahoo
This rivalry first began during the late 1990s and early 2000s. In the process, both firms became leading innovators in the search engine field. At the time, Yahoo was arguably Google’s biggest competitor, doggedly fighting to retain its control over search features. As Google grew and matured its reach and offerings, Yahoo ceded its window of success.
Today, as Yahoo’s trying to climb back on its feet, it has no web browser of its own to provide to consumers. The lack of this one tool, a browser, has severely limited its capacity to engage and thrive in the online search ecosystem. Understanding this opportunity, Yahoo has been quietly working on their own browser since at least early 2009. Even with this move, industry experts argue that it could be a while before Yahoo has a real competitive offering in the marketplace.
The Significance of Web Browsers in Search
Web browsers become an important, although often silent, part of the user experience when accessing web content. They function as the choke point through which users must pass to access web-based search engines and other SaaS applications. Only 40% of new search queries are now conducted through a web browser. Owning the most popular browser (Chrome) would provide Yahoo unprecedented clout in the hotly competitive search market.
Purchasing Chrome would be a massive coup to strengthen Yahoo’s portfolio. It would make a very meaningful change to the competitive playing field in the tech industry. If Google chooses to divest Chrome, it might lead to a more fractured market. Such a move would open the door for other competitors to challenge Google’s entrenched supremacy.
Implications for the Future
Google today is under an antitrust suit. Its flaccid defense has left the company vulnerable to the possibility of other restructuring. The tech sector is abuzz with excitement over the notion of selling off Chrome. Now Yahoo is emerging as a dark horse in this auction.
Yahoo, meanwhile, is said to have plans to create its own browser from scratch. They need to address challenges involving time and resources first before they jump into a very competitive space. If successful in acquiring Chrome, Yahoo could harness its legacy as one of the earliest search engines to reclaim some market share.
