A US judge has rejected the government’s demand that Google sell its Chrome web browser, but imposed significant requirements to restore competition in online search. The ruling comes 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.
Google vice president of regulatory affairs Lee-Anne Mulholland stated that the decision acknowledges the industry’s evolution with the advent of AI, providing people with more ways to find information. Mulholland added that Google has concerns about how court-imposed requirements to share search data and limit distribution of services will affect user privacy.
The Justice Department described the remedies as “significant,” with Assistant Attorney General Abigail Slater saying that the department will review the opinion to consider its options and next steps regarding seeking additional relief. However, the decision fell short of expectations from some observers who had anticipated more radical changes to Google.
The case focused on Google’s 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. Judge Mehta warned that a Chrome divestiture “would be incredibly messy and highly risky” and said US attorneys had overreached.
Instead, the judge ordered Google to make available to “qualified competitors” search index data and user interaction information that rivals can use to improve their services. The ruling also 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.
The decision has significant implications for the tech industry, with Google parent Alphabet’s shares rising by 7.5% in after-hours trading. Apple’s stock also rose by more than 3%. The ruling is part of a broader government and bipartisan campaign against Big Tech, with the US currently having five pending antitrust cases against major technology companies.
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’s ad tech operations also constitute an illegal monopoly that stifles competition. The outcome of these cases will likely have a profound impact on the future of the tech industry and online search.
