A U.S. federal judge has ruled that Google will not be forced to sell its Chrome browser or break up its Android operating system, but the company must make significant changes in how it operates. Judge Amit Mehta rejected the Justice Department’s push for extreme remedies such as forcing Google to divest Chrome or end its revenue-sharing deal with Apple, calling those steps overreaching. Instead, the court ordered Google to stop making exclusive distribution deals and to share important search data with competitors. This decision comes after years of legal battles over whether Google unfairly used its dominance to keep rivals out of the market.
The ruling requires Google to open up parts of its powerful search index and user interaction data to other companies, including AI startups, so they can build stronger alternatives to Google Search. It also blocks the company from locking partners into contracts that restrict them to only using Google products like Chrome, Google Assistant, or the Gemini app. While the court’s measures aim to boost competition, they allow Google to keep its biggest business advantages intact. Investors quickly reacted, with Alphabet’s stock jumping more than 6 percent and Apple’s stock also rising after the announcement. The Justice Department has signaled it may appeal, which could delay how quickly these changes take effect.
Judge Spares Google From Breakup but Imposes New Limits
A federal judge spared Google from a forced breakup after ruling that its online search business operates as a monopoly. Judge Amit Mehta issued a 230-page order that rejected some of the most aggressive remedies proposed by the Justice Department. He refused to make Google sell its Chrome browser or Android operating system, explaining that such a move would be disruptive and unfair. Instead, the court barred Google from signing exclusive contracts for its core products, including Google Search, Chrome, Google Assistant, and the Gemini app. The order will remain in place for six years, although it can be paused during an appeals process that may last for years.
Judge Mehta said Google’s decision to make its search engine the default on Chrome contributed more to its monopoly power than the ownership of the browser itself. Forcing Google to divest Chrome, he explained, would be “incredibly messy” because Chrome does not operate as a standalone business. Mehta also highlighted the fast-changing nature of technology, especially with the rise of generative AI, and admitted that predicting the future impact of remedies was a challenge. Shares of Alphabet, Google’s parent company, rose more than 6 percent in after-hours trading following the decision, while Apple shares also saw a boost.
Data Sharing and Industry Impact
The ruling requires Google to share parts of its search index and user interaction data with certain competitors. Judge Mehta said this step is necessary to deny Google the full benefits of its exclusionary practices. However, he limited the scope of data sharing compared with what the Justice Department had requested. The judge also allowed Google to continue striking non-exclusive deals, meaning its search engine, Chrome, or AI services can still be set as defaults on devices, but competitors must also get a fair chance. Mehta wrote that a total ban on payments would harm distribution partners, related markets, and consumers.
The Justice Department described the ruling as a major step toward opening up the search market after more than a decade of Google dominance. Officials said the remedies would also prevent Google from using the same anticompetitive tactics in generative AI that it used in search. Google, meanwhile, expressed disappointment and promised to review its legal options, raising concerns about privacy risks from the required data sharing. The company insisted that competition remains strong and that people can easily choose other services. The decision marks the most significant monopoly ruling since the Microsoft case in 2000, and it arrives as Google faces another antitrust trial over its dominance in online advertising technology.
What Comes Next for Google and the DOJ
The fight between Google and the Justice Department is not over. Judge Mehta’s ruling gave Google room to keep its most valuable businesses, but it also placed real limits on how the company can operate. Google has already signaled it will appeal, and the DOJ may also push for tougher remedies in higher courts. The appeals process could take years, leaving the order on hold during that time. Meanwhile, Google faces another major antitrust trial focused on its advertising technology business, which means the company’s legal troubles are far from finished.
Key Things to Watch
- Appeals Battle: Google plans to challenge the ruling, which could delay or change how the order is enforced.
- DOJ Strategy: The Justice Department may push for stronger remedies as the case moves to higher courts.
- Advertising Trial: Google faces a separate antitrust fight over its dominance in digital ads later this year.
- Impact on AI Rivals: Data sharing rules may help AI startups and search competitors grow stronger.
- Global Ripple Effect: Other countries may use this ruling as a model for their own antitrust actions against big tech.
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Conclusion
Judge Mehta’s decision marks a partial win for Google but also signals real change in how the company can use its dominance in search. The court stopped short of forcing a breakup of Chrome or Android, yet it ordered Google to end exclusive contracts and to share valuable search data with rivals. This mix of restrictions aims to give competitors, including AI startups, a fairer chance in the market while avoiding disruptions for consumers and partners. Google has already voiced concerns about privacy and plans to appeal, while the Justice Department calls the ruling a major step toward opening the search industry. With another antitrust trial over advertising ahead, Google remains under heavy scrutiny, and the long legal battle is set to shape the future of both search and artificial intelligence.
