Latest news with #Muhlheim
Arabian Post
05-05-2025
- Business
- Arabian Post
Firefox Faces Existential Threat as Antitrust Remedies Target Google's Default Search Deals
Mozilla's Chief Financial Officer, Eric Muhlheim, has issued a stark warning about the future of the Firefox browser, stating that its survival is at risk if the U.S. Department of Justice's proposed remedies against Google's search monopoly are fully implemented. Muhlheim testified that losing Google's default search engine payments would threaten the browser maker's existence. 'We would be really struggling to stay alive,' Muhlheim said during testimony as Google presents its defense in the antitrust case. The U.S. Department of Justice has proposed remedies that would prohibit Google from paying to be the default search engine in browsers like Firefox. Currently, Firefox derives about 90% of its revenue from such deals, with 85% coming from Google alone. The loss of this funding could force Mozilla to implement severe company-wide cuts, potentially putting Firefox out of business and affecting nonprofit initiatives. Mozilla has explored alternatives like Bing, but the latter generates significantly less revenue. Previous attempts to switch default search engines, including a shift to Yahoo between 2014 and 2017, led to user dissatisfaction and browser abandonment. Muhlheim argued that such outcomes could ironically consolidate Google's dominance by weakening Firefox, one of the few non-Big Tech browser engines. While recognizing the need for diversified income and supporting browser 'choice screens,' Mozilla opposes similar measures for search engines within browsers. The company maintains that its privacy-focused approach complicates adopting ad-based revenue models like Opera's. Judge Amit Mehta acknowledged that broader high-quality search competition could benefit Mozilla, but Muhlheim indicated that reaching such a scenario may take too long to prevent damaging short-term consequences. See also Pi Coin Sees Surge as $188 Million Unlock Looms Mozilla's financial dependence on Google is not new. In 2021, Google paid a total of $26.3 billion to be the default search engine in multiple browsers, phones, and platforms. A significant portion of this amount went to Mozilla. The arrangement is the backbone of Mozilla's finances. In fact, Google's search payments accounted for a staggering 86% of Mozilla's total revenue in 2021-2022 . Losing this massive income stream would pose a severe financial crisis for the organization known for privacy and open web standards. Mozilla's CEO, Mitchell Baker, testified that Mozilla's temporary switch to Yahoo is 'the only situation in which a browser has switched the default search engine provider.' This makes Baker's testimony potentially very powerful because it's a clear example that backs up Google's core argument that its search engine wins default status due to its quality, not due to anticompetitive behaviors. Baker did not clarify how much Google pays for that deal today, only vaguely estimating that it's 'hundreds of millions of dollars' annually, Bloomberg reported. But she acknowledged that her salary is 'partly tied to Mozilla's yearly revenue,' which suggests that if the judge ultimately sides with the DOJ and orders Google to break up its search business, not only could Mozilla lose revenue, but Baker's salary could potentially take a big hit, too. Mozilla has publicly expressed concern that the DOJ's proposed remedies could inadvertently harm independent browsers. In a blog post, Mozilla stated that the outcomes of this case will have impacts that go far beyond any one company or market. As written, the proposed remedies will force smaller and independent browsers like Firefox to fundamentally reexamine their entire operating model. By jeopardizing the revenue streams of critical browser competitors, these remedies risk unintentionally strengthening the positions of a handful of powerful players, and doing so without delivering meaningful improvements to search competition. See also Citron Departs as Discord Charts New Course Under Sakhnini The DOJ's antitrust case against Google is a significant legal battle with far-reaching implications. The department has accused Google of maintaining an illegal monopoly in the online search market by making exclusive deals with device makers like Apple and Samsung. These agreements, which paid billions to ensure Google remained the default search engine, were found to unfairly suppress competition. Judge Amit Mehta has yet to decide on remedies, which could range from contractual tweaks to breaking up the company. Google plans to appeal the decision.
Time of India
04-05-2025
- Business
- Time of India
CEO of Europe's biggest browser company in court: We would be really struggling to stay alive without Google
Mozilla 's Chief Financial Officer warned Friday that Firefox 's survival is at risk if the Justice Department's proposed remedies against Google 's search monopoly are fully implemented. Eric Muhlheim testified that losing Google's default search engine payments would threaten the browser maker's existence. "We would be really struggling to stay alive," Muhlheim said during testimony as Google presents its defense in the antitrust case . The court has already ruled that Google maintains an illegal monopoly in search, partly through exclusionary default search engine agreements. Muhlheim revealed that Firefox generates about 90 percent of Mozilla's revenue, with approximately 85 percent of that coming directly from its Google search deal. Without this income, Mozilla would face "significant cuts across the company" and a potential "downward spiral" as product engineering investments decrease. Google deal critical to browser's financial viability by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo The DOJ wants to prohibit Google from paying to be the default search engine in third-party browsers like Firefox. Additional proposals include forcing Google to sell its Chrome browser and requiring it to share search results with competitors. While these remedies aim to increase competition, Muhlheim testified that an immediate end to Google payments would be devastating for Mozilla. The company has explored alternatives, including discussions with Microsoft about Bing, but found that other search engines don't monetize traffic as effectively as Google. A December 2024 board presentation highlighted that losing Google payments posed a "significant threat to viability for Mozilla with limited ability to mitigate." When Mozilla previously made Yahoo the default search engine between 2014 and 2017, users disliked the experience so much that many abandoned Firefox entirely. Long-term market reform vs immediate survival Under cross-examination, Muhlheim acknowledged it would be preferable not to rely on one customer for most of Mozilla's revenue. He also agreed with Judge Amit Mehta that Mozilla would benefit if at least one other company matched Google's quality and monetization capabilities. "If we were suddenly in that world," Muhlheim said, "that would be a world that would be better for Mozilla." The CFO noted that Firefox's underlying Gecko browser engine is "the only browser engine that is held not by Big Tech but by a nonprofit," contrasting with Google's Chromium and Apple's WebKit. Mozilla developed Gecko to prevent a single company from controlling internet protocols. While the DOJ's proposals could eventually create more quality search engines competing for Firefox's default position, Muhlheim warned this would likely take too long for Mozilla to survive the transition period intact.
India Today
03-05-2025
- Business
- India Today
No Google, no Firefox? Firefox may disappear without Google search deal, Mozilla warns
In the wake of a landmark antitrust case in the US against Google, concerns are mounting over the potential consequences of proposed remedies aimed at curbing Google's dominance in the search engine market. The US Department of Justice (DoJ) is pushing for a series of sweeping measures, including a possible forced sale of Google's Chrome browser. Responding to these developments, Google CEO Sundar Pichai warned that dismantling Chrome could effectively kill off Google Search in its current form. Now, Mozilla — the organisation behind Firefox — has voiced its own alarm, stating that it could be driven out of business if the court implements all the JoD's proposed very frightening,' said Mozilla's Chief Financial Officer Eric Muhlheim during testimony on Friday, as reported by The Verge. He explained that Firefox relies heavily on revenue from its partnership with Google, which pays to be the default search engine on the browser. This deal accounts for around 85 percent of Mozilla's income and roughly 90 percent of the revenue for its for-profit subsidiary, which supports the broader non-profit Mozilla this funding were to disappear, Mozilla would need to implement 'significant cuts across the company,' according to Muhlheim, including scaling back product engineering efforts for Firefox. He cautioned that these reductions could trigger a 'downward spiral,' diminishing the browser's appeal and potentially resulting in its collapse. Such an outcome would also jeopardise Mozilla's broader initiatives, including its development of open-source tools and projects focused on leveraging AI to address climate He further argued that such a scenario would merely reinforce the very market dominance regulators aim to break up. He noted that Firefox's underlying Gecko engine is 'the only browser engine that is held not by Big Tech but by a nonprofit.' In contrast, the other leading engines — Google's Chromium and Apple's WebKit — are operated by tech giants. Mozilla originally created Gecko, he said, out of concern that Microsoft might monopolise internet protocols, and its development has played a crucial role in keeping the web open and interoperable. While cross-questioning, Judge Amit Mehta asked Muhlheim whether he agreed that Mozilla would benefit if there were at least one other company capable of matching Google's search quality and monetisation abilities. 'If we were suddenly in that world,' Muhlheim responded, 'that would be a world that would be better for Mozilla.'Even though many companies, like Yahoo, involved in the Google trial have expressed interest in acquiring Chrome, Firefox has not. Instead, Mozilla is sounding the alarm over the unintended consequences of a crackdown that, while targeting one monopoly, could end up stifling one of the last remaining independent players in the browser space.
