
A US judge has rejected the government鈥檚 demand that Google sell its Chrome web browser as part of a major antitrust case, but imposed sweeping requirements to restore competition in online search.
The landmark ruling on Tuesday local time came after Judge Amit Mehta found in August 2024 that Google illegally maintained monopolies in online search through exclusive distribution agreements worth billions of dollars annually.
鈥淭oday鈥檚 decision recognises how much the industry has changed through the advent of AI, which is giving people so many more ways to find information,鈥 Google vice president of regulatory affairs Lee-Anne Mulholland said.
鈥淭his underlines what we鈥檝e been saying since this case was filed in 2020: Competition is intense and people can easily choose the services they want.鈥
Mulholland added that Google has 鈥渃oncerns鈥 about how court-imposed requirements to share search data and limit distribution of services will affect user privacy.
Judge Mehta鈥檚 decision represents one of the most significant rulings against corporate monopoly practices in two decades and could fundamentally reshape the tech giant鈥檚 future.
The Justice Department called the remedies 鈥渟ignificant.鈥
鈥淲e will continue to review the opinion to consider the Department鈥檚 options and next steps regarding seeking additional relief,鈥 Assistant Attorney-General Abigail Slater said in a release.
However, Tuesday鈥檚 decision fell short of expectations from some observers who had anticipated more radical changes to Google.
鈥淚t sounds like the judge felt that it was too draconian to provide some of the remedies that prosecutors or the Department of Justice wanted,鈥 professor Carl Tobias, of the University of Richmond Law School, said.
鈥淕oogle is certainly not going to be broken up, and it鈥檚 not clear that its business model is going to change a whole lot.鈥
The US government had pushed for Chrome鈥檚 divestment, contending the browser serves as a crucial gateway to internet activity and facilitates a third of all Google web searches.
But in his ruling, Mehta warned that a Chrome divestiture 鈥渨ould be incredibly messy and highly risky鈥 and said US attorneys had overreached.
The case focused on Google鈥檚 expensive distribution agreements, paying billions for Apple, Samsung, and other smartphone manufacturers to establish Google as the default search engine on iPhones and other devices.
鈥楥rippling鈥 effects
In his decision last year, Judge Mehta said Google鈥檚 default status on the iPhone allowed the company to evolve into an internet powerhouse, insulated from competitive threats.
But in a surprise move, Mehta on Tuesday said an outright ban of these deals was off the table, insisting that such a prohibition could have too profound an effect on other businesses.
鈥淕oogle will not be barred from making payments or offering other consideration to distribution partners for preloading or placement of Google Search, Chrome, or its GenAI products,鈥 the judge wrote.
Minutes after the decision, shares in Google parent Alphabet rocketed by 7.5% in after-hours trading. Apple鈥檚 stock rose by more than 3%.
鈥淭his is a monster win for [Apple] and for Google it鈥檚 a home run ruling that removes a huge overhang on the stock,鈥 Dan Ives, of Wedbush Securities, said.
Under the judge鈥檚 order, Google must make available to 鈥渜ualified competitors鈥 search index data and user interaction information that rivals can use to improve their services.
The ruling also specifically addresses the emerging threat from generative artificial intelligence chatbots like ChatGPT, extending restrictions to prevent Google from using exclusive deals to dominate the AI space as it did with traditional search.
A technical committee will oversee implementation of the remedies, which take effect 60 days after the judgment is entered.
Offensive against Big Tech
Google faces another legal case, awaiting a federal court decision in Virginia regarding its web display advertising technology business. A separate judge ruled earlier this year that Google鈥檚 ad tech operations also constitute an illegal monopoly that stifles competition.
These cases are part of a broader government and bipartisan campaign against Big Tech. The US currently has five pending antitrust cases against major technology companies.
The original search engine case against Google, along with a separate case targeting Meta, originated during the first Trump administration in 2020.
The Biden administration maintained these prosecutions while launching additional cases against Apple and Amazon, as well as a second case challenging Google.
-Agence France-Presse
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