Google avoided a breakup after a U.S. judge rejected the government’s toughest demands, including forcing the company to sell its Chrome browser, handing Big Tech another win in the largest antitrust trial in 30 years.
Judge Amit Mehta noted that generative AI poses a long-term challenge to the search business as chatbots increasingly act like search engines. However, Alphabet will still be required to make some changes – such as sharing search data with competitors and ending exclusive distribution deals.
The decision marks a setback to the U.S. government’s efforts to rein in the dominance of major tech firms, falling well short of the toughest remedies antitrust officials had sought. It comes after the Washington-based judge ruled last year that Google unlawfully monopolized the online search and search advertising markets. In April, Mehta held a three-week hearing to decide on appropriate remedies.
Google, in response, welcomed the ruling for acknowledging the impact of AI on the search business but reiterated its disagreement with Mehta’s earlier finding of monopoly power. The company also voiced concern over the judge’s requirement to share search data with rivals.
“We have concerns about how these requirements will impact our users and their privacy, and we’re reviewing the decision closely,” said Lee-Anne Mulholland, VP of regulatory affairs.
Although Google can no longer enter into exclusive agreements, it will still be permitted to compensate its partners, which comes as a major victory for Apple, which has reportedly earned around $20 billion annually for setting Google as the default search engine on iPhones. Following the ruling, Alphabet’s stock jumped roughly 6% in premarket trading, while Apple’s shares rose more than 3%.
The ruling ranks among the most significant court decisions for the tech industry in over 25 years and may serve as a model for judges handling future cases against Meta, Amazon, Apple. Analysts at MoffettNathanson stated that this ruling comes as a shock to anyone who has been following the case closely, noting “This outcome is a home run for the status quo, and the status quo has been very favorable to both Google and Apple.”
Under the ruling, Google must share portions of its search data with rivals such as Microsoft, DuckDuckGo, and emerging AI companies like OpenAI and Perplexity. This access could help competitors strengthen their own search engines or artificial intelligence systems. The court also barred Google from forcing device makers to pre-install all its apps in exchange for access to the Google Play Store on Android devices.
