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App association criticizes DoJ's proposed remedies against Google

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Morgan Reed Executive Director of The App Association (ACT) | The App Association (ACT)

The United States Department of Justice (DoJ) has finalized its proposed judgment in the case against Google, suggesting a significant breakup of the company's products and services. The proposal has raised concerns about potential negative impacts on consumers and small businesses that rely on Google's platforms.

Morgan Reed, president of ACT | The App Association, expressed concern over the DoJ's approach. "The DoJ’s proposed remedies are actually an attempt to legislate based on flawed forecasts of the future in a manner that disregards the consequences small businesses in the app economy would bear," Reed stated. He warned that these measures could harm small businesses, describing them as a "sledgehammer" judgment.

The proposed judgment calls for Google to divest from its Chrome browser and Android operating system. These platforms are crucial for small businesses to access global markets and maintain consumer trust. The remedies also target "self-preferencing," which is described as essential management for integrated online marketplaces. According to Reed, removing access to these services could hinder competition and increase costs for consumers.

Furthermore, the proposal suggests open access to Google's search data, assuming users prefer commoditized free access over high-quality services. This assumption is contested by those who argue it could disadvantage small business consumers relying on such services.

Reed emphasized that Google's investments in emerging markets like generative AI benefit small businesses by providing resources and fostering innovation. Restricting Google's involvement in these areas might lower product quality and counteract antitrust law objectives.

ACT | The App Association remains committed to advocating for policies that support competition while benefiting small businesses and app developers.

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