Google Spared Break-Up, Ordered to Share Data with Competitors

Google had earlier suggested less severe remedies, such as reducing its revenue-sharing deals with partners like Apple to keep its search engine as the default on their devices and browsers.

On Tuesday, the company welcomed the court’s decision as a victory, suggesting that the rapid rise of artificial intelligence (AI) may have influenced the outcome.

“Today’s ruling acknowledges how much the industry has evolved with AI, giving people more ways to find information,” Google said in a statement. “This reinforces what we’ve said since 2020: competition is strong, and consumers can easily choose the services they prefer.”

Google has consistently denied any wrongdoing since the case began in 2020, arguing that its dominance reflects the superior quality of its search engine rather than unfair practices. Last year, Judge Amit Mehta found that Google had indeed relied on anticompetitive tactics to maintain its monopoly in online search, in violation of US law.

However, Judge Mehta concluded that forcing Google to sell Chrome would be “a poor fit for this case.” The company also avoided being forced to divest Android, which powers most of the world’s smartphones. Google had argued that separating Android or Chrome would effectively render the products unworkable.

Following the ruling, Assistant Attorney General Abigail Slater wrote on X that while the order aims to restore competition in the long-monopolized search market, the Justice Department is still considering whether it goes far enough. Alphabet’s shares surged more than 8% after the decision.

The outcome also benefits smartphone manufacturers like Apple, Samsung, and Motorola. Before the ruling, Google had paid billions to such firms to exclusively preload or promote its apps and services. Court documents revealed that Google spent over $26 billion on such arrangements with Apple, Mozilla, and others in 2021.

Now, the company is barred from signing exclusive deals covering Google Search, Chrome, Google Assistant, or the Gemini app. This change allows device makers to feature rival search engines, browsers, or AI assistants alongside Google’s products. Still, Google can continue compensating distributors for default placement.

Industry analysts described the ruling as a partial win for Google and its partners. “It’s good news for big tech,” said Gene Munster of Deepwater Asset Management, noting that Apple also benefits since the decision forces annual renegotiations of its search deal with Google. Melissa Otto of S&P Global Visible Alpha added that the decision was “less severe than markets had feared,” making it a win-win for large corporate players given Google’s search revenue of nearly $200 billion projected this year.

Not everyone was satisfied. DuckDuckGo CEO Gabriel Weinberg criticized the order for not going far enough to curb what he called Google’s “illegal practices,” warning that consumers would still suffer.

The ruling does not end Google’s legal battles. Later this month, the company faces a separate Justice Department trial over allegations that it holds unlawful monopolies in online advertising technology.