Google's monopoly over web search was bound to raise concerns with the various antitrust watchdogs around the world, and reports revealing that Google paid $26 Billion to be the default search engine on several platforms in 2021 didn't help.
Putting an end to a long-running battle between Google LLC and the State of Colorado, a recent ruling by District Judge Amit P. Mehta found Google to be in violation of the Sherman Antitrust Act. Why? Due to their monopolistic hold over two product markets in the United States.
No doubt Google will appeal the suite, but the judge is set to hold a new trial for deciding on the remedy for this case. Many are waiting to see what kind of penalties would the search engine giant be subject to.
In all this, Mozilla, the ones behind Firefox, which is the most popular alternative to Google Chrome, might stand to lose a massive chunk of their revenue. They were already under fire by the community with a recent controversy, and now this. It doesn't bode well for them.
Another Major Setback For Mozilla?
Many of you might know that Mozilla receives royalties from Google through their foundation for keeping the giant's search engine as the default option on all new Firefox installations, be it mobile or desktop.
If the Mozilla Foundation's publicly disclosed GAAS audit financial records from 2022 are any indications, then there are some valid things to be worried about.
You see, for the total revenue of about $593 million, over $510 million accounted just for the royalties received by the foundation, in which Mozilla paid $19.1 million in licensing fees, and MZLA paid $0.195 million.
Does the above account for the total amount? No!, they might have some other partnerships going on that are not reflected in the report, but, it's common knowledge that Google is the most generous one among those.
I am not quite sure why the Mozilla Foundation stopped publishing their records after that year, they used to be consistent on that front going back to 2003 when the foundation was formed.
In any case, you see how the end-result of this lawsuit could affect Mozilla too, right?
Just looking at the old 2022 audit data shows that they could lose a substantial amount of revenue if Google stops paying, and when compared to their total liabilities of over $123 million for that year, the situation gets more iffy.
I am inclined to assume that their liabilities must've shot up by now, seeing that earlier this year, they acquired Anonym, an Adtech company, for an undisclosed amount. I also hope that their revenue has shot up.
But, would that be enough to negate such a potentially massive decline in revenue?
Of course, I cannot accurately judge their financial situation without having the latest numbers. But, one thing is clear, if the judge decides on a remedy that stops Google from paying other organizations like Mozilla, Apple, etc. to keep their search engine as the default on such platforms.
Then Mozilla will either have to find another search engine partner, or simply accept it as is, and find other ways to boost revenue.
In conversation with Fortune, an unnamed Mozilla spokesperson said that:
Mozilla has always championed competition and choice online, particularly in search. We’re closely reviewing the court’s decision, considering its potential impact on Mozilla and how we can positively influence the next steps…
Firefox continues to offer a range of search options, and we remain committed to serving our users’ preferences while fostering a competitive market.
That sounds like the usual diplomatic answer executives give to keep the public calm, and on the fence. In the end, we, as users of Mozilla's products, will have to wait and watch how the situation unfolds.
The recently appointed interim CEO of Mozilla, Laura Chambers, now has an uphill battle to fight for the rest of 2024, and beyond, if she decides to continue in the organization in that key role.
💬 What do you think? Will Mozilla be able to ride out this looming financial storm?
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