Washington: A US judge on Tuesday rejected the government’s 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 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.
According to Lao News Agency, the ruling represents one of the most significant rulings against corporate monopoly practices in two decades and could fundamentally reshape the tech giant’s future. Google vice president of regulatory affairs Lee-Anne Mulholland commented on the decision, stating that the industry has changed significantly due to the advent of AI, which provides more ways for people to find information. Mulholland emphasized that competition is intense and that users can easily choose their preferred services. However, she also expressed concerns about how court-imposed requirements to share search data and limit distribution of services might affect user privacy.
The Justice Department called the remedies significant, with Assistant Attorney General Abigail Slater indicating that the Department would continue to review the opinion to consider options for seeking additional relief. Despite the ruling, some observers had anticipated more radical changes to Google. Professor Carl Tobias of the University of Richmond Law School noted that the decision fell short of expectations, as Google will not be broken up, and its business model may not change significantly.
The US government had pushed for Chrome’s divestment, arguing that the browser serves as a crucial gateway to internet activity, facilitating a third of all Google web searches. However, Judge Mehta warned that divesting Chrome would be highly risky and indicated that US attorneys had overreached.
The case focused on Google’s expensive distribution agreements, which involved paying billions to Apple, Samsung, and other smartphone manufacturers to establish Google as the default search engine on their devices. In a surprise move, Mehta stated that an outright ban on these deals was off the table, as such a prohibition could have too profound an effect on other businesses. Instead, Google will not be barred from making payments or offering consideration to distribution partners for preloading or placing Google Search, Chrome, or its GenAI products.
Following the decision, shares in Google parent Alphabet rose by 7.5 percent in after-hours trading, and Apple’s stock increased by more than three percent. Dan Ives of Wedbush Securities described the ruling as a significant win for Apple and Google, removing a major overhang on the stock.
Under the judge’s order, Google must provide “qualified competitors” access to search index data and user interaction information to enhance their services. The ruling also addresses the emerging threat from generative AI chatbots like ChatGPT, imposing restrictions to prevent Google from using exclusive deals to dominate the AI space as it did with traditional search. A technical committee will oversee the implementation of these remedies, which will take effect 60 days after the judgment is entered.
Google faces another legal case concerning its web display advertising technology business, with a federal court decision in Virginia pending. Earlier this year, a separate judge ruled that Google’s 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, with five pending antitrust cases against major technology companies. The original search engine case against Google, along with a separate case targeting Meta, began during the first Trump administration in 2020. The Biden administration has maintained these prosecutions while launching additional cases against Apple and Amazon, as well as a second case challenging Google.