Google's big win: Judge rejects breakup, allowing tech giant to keep Chrome

Washington: In a landmark antitrust ruling on Tuesday, US District Judge Amit Mehta rejected the government’s demand that Google divest its popular Chrome web browser but imposed considerable requirements intended to restore competition in online search.

The decision follows Judge Mehta’s 2024 finding that Google unlawfully maintained monopolies in online search by striking exclusive, multi-billion-dollar agreements with major smartphone makers and browser developers to make Google the default search engine. These agreements included partnerships with Apple, Samsung, and others.

While the Justice Department sought drastic remedies, including forcing Google to sell Chrome and Android operating system assets, the court ruled against such divestiture, calling it “incredibly messy and highly risky.” Judge Mehta said the plaintiffs overreached and that Google did not exploit its assets to impose illegal constraints.

Instead, Google is barred from entering exclusive deals that lock out competition, but will still be allowed to pay for product placement and preloading. This ruling particularly targets Google’s default search status, which has helped it dominate the digital advertising market.

Google’s vice president of regulatory affairs, Lee-Anne Mulholland, noted that the ruling reflects changes in the industry due to AI advancements, offering users new ways to access information. She raised concerns about court-ordered data sharing and distribution limits potentially impacting user privacy.

The judge ordered Google to share search index data and user interaction information with qualified competitors, enabling them to improve their offerings. This includes restrictions to prevent Google from using exclusivity contracts to dominate the emerging generative AI landscape, including products like ChatGPT.

Following the ruling, Alphabet's shares surged by over 7 per cent in after-hours trading, with Apple’s stock also gaining due to the ruling preserving its lucrative deal with Google.

The Justice Department called the remedies substantial but said it will review the ruling to consider next steps. Legal experts believe the ruling, although falling short of breaking up Google, could still reshape its business practices and increase competition in the search market as AI technologies continue to evolve.

Google faces additional antitrust scrutiny over its advertising technology, with another federal case ongoing that challenges its dominance in web display ads.

This case is part of a broader bipartisan US campaign targeting Big Tech monopolies, maintaining pressure on Silicon Valley giants like Google, Meta, Apple, and Amazon.

With inputs from AFP