Google has announced plans for its Google Chrome Operating System. Chrome OS is a cloud based operating system for PCs that the company says will be characterized by “speed, simplicity, and security.” In contrast to operating systems, like Windows, that sit on a computer’s desktop, Chrome OS will be an open source, web standards based operating system that will be accessed through the internet. Google has stated that it is cooperating with netbook and chip manufacturers Acer, Adobe, Asus, Freescale, Hewlett-Packard, Lenovo, Qualcomm, and Texas Instruments to develop Chrome OS.

Google Attacks Microsoft In The Netbook Market And

Chrome OS represents Google’s attack on Microsoft’s dominance in the PC operating system market. Google is working on Chrome OS at a time when the netbook market is greatly expanding. Microsoft’s existing operating systems, Windows XP and Windows Vista, are not optimal solutions for netbooks. Windows XP is old and outdated, while Windows Vista requires too much RAM to run on netbooks. Microsoft’s Windows 7 operating system, due out later this year, is designed to run on netbooks.

That Chrome OS will be open source stands in direct contrast to proprietary operating systems like Microsoft’s. Google believes that software developers will prefer to write for a web based, open source OS because it will be easier to write programs. Microsoft and others will need to prove that a proprietary OS can add value.

Moreover, Chrome OS is Google’s bet that consumer will move toward cloud and web based computing. The company explains that “Google Chrome OS is being created for people who spend most of their time on the web, and is being designed to power computers ranging from small netbooks to full-size desktop systems.”

Will Chrome OS Trigger Antitrust Concerns?

Although details of Chrome OS are not final, it is not too early to think about antitrust concerns given Google’s dominance in the search engine market. The main potential concern is that Chrome OS will be tied to Google’s Chrome browser. However, this is appears to be different from the Windows/Internet Explorer arrangement that got Microsoft into antitrust trouble both here and in Europe. In the Microsoft situation, Internet Explorer came bundled with the Windows operating system.

It appears that Chrome OS will not be bundled with the Google Chrome browser. If that is the case, it will be difficult for the DOJ and competitors to argue that Google is leveraging its dominance in the browser market to dominate the operating system market. If Chrome OS is compatible with other browsers, that would reduce any antitrust concerns.

These are some initial thoughts about possible antitrust issues that Chrome OS may raise. But it is much too early to tell what the real antitrust implications will be. We will keep an eye on this.

Douglas Y. Park
Twitter: @DougYPark