Google has responded to the US Department of Justice's (DOJ) antitrust lawsuit with a counteroffer, proposing to unbundle its Android apps and reform its search distribution contracts to address concerns over its monopoly in the search engine market.

The DOJ's lawsuit, filed earlier this year, accused Google of illegally maintaining its search monopoly and proposed several remedies, including forcing the company to sell its Chrome browser and Android operating system. However, Google's counteroffer, submitted on Friday, takes a different approach. Instead of breaking up its core businesses, Google proposes to unbundle its Android apps, reform its search distribution contracts, and increase transparency in its dealings with other companies.

According to Google's regulatory VP, Lee-Anne Mulholland, the company's proposed remedies are directed at its search distribution contracts, which the DOJ has identified as a key area of concern. Under the proposal, Google would block itself from signing deals that link licenses for Chrome, Search, and its Android app store, Google Play, with placement or preinstallation of its other apps, including Chrome, Google Assistant, or the Gemini AI assistant, for a period of three years.

The proposal would also allow Google to pay for default search placement in browsers but would require the company to allow for multiple deals across different platforms or browsing modes and to revisit the deals at least once a year. This would increase competition and give other search engines a fair chance to compete for default placement, addressing one of the DOJ's key concerns.

Notably, Google's proposal does not address the DOJ's suggestion that the company should be forced to share its valuable search data with other companies to help their products catch up. This omission may be a point of contention in future negotiations between Google and the DOJ.

Google's proposal is seen as a significant development in the ongoing antitrust showdown between the company and the DOJ. While the company still plans to appeal Judge Amit Mehta's ruling that found Google guilty of monopolistic practices, it has agreed to submit a revised proposal on March 7th, ahead of a two-week trial over the issue in April.

The implications of Google's proposal are far-reaching, and its adoption could have significant effects on the search engine market. If implemented, the proposal could increase competition and innovation in the sector, ultimately benefiting consumers. However, the DOJ may still push for more drastic measures, such as breaking up Google's core businesses, to address its concerns over the company's monopoly.

As the antitrust showdown between Google and the DOJ continues, one thing is clear: the stakes are high, and the outcome will have significant implications for the tech industry and consumers alike. Whether Google's proposal will be enough to address the DOJ's concerns remains to be seen, but one thing is certain – the company is willing to negotiate and find a solution that works for all parties involved.