A U.S. federal judge on Tuesday ruled that Google must end its exclusive contracts for its Google Search, Chrome browser, Google Assistant, and Gemini app products, addressing the tech giant’s monopoly in the online search market. The decision comes in a 230-page ruling by U.S. District Judge Amit Mehta, though it stops short of some of the government’s most aggressive demands, including forcing Google to sell Chrome or its Android operating system.US Judge Bars Google From Exclusive Deals in Search, Chrome, and AI Products
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Judge Mehta emphasized that Google’s default search arrangements, not its ownership of Chrome, contributed to its monopoly power. He allowed Google to continue striking non-exclusive deals, enabling its search engine, Chrome, and AI products to remain the default on other platforms like smartphones and browsers. The ruling will remain in effect for six years but could be paused during an appeal, which Google has pledged to pursue.
“Cutting off payments from Google almost certainly will impose substantial—sometimes crippling harms to distribution partners, related markets, and consumers, which counsels against a broad payment ban,” Mehta wrote. The judge also ordered Google to share search index and user-interaction data with certain competitors, although less than the Justice Department had requested.
Google’s parent company, Alphabet, saw its shares jump over 6% in after-hours trading following the ruling. In a statement, Google said it “disagrees strongly” with the initial liability decision but noted that the court “recognized that divesting Chrome and Android would have gone beyond the case’s focus on search distribution.”
The U.S. Department of Justice (DOJ) welcomed the remedies, saying they “pry open the market for general search services” and prevent Google from using anticompetitive tactics for generative AI technologies. The DOJ praised the ruling for reaching Google’s AI products while securing key remedies in the company’s monopoly of online search.
The case, originally filed in 2020, found Google had maintained a search monopoly, marking the largest antitrust ruling since Microsoft faced a potential breakup in 2000. The DOJ had sought aggressive remedies, including forcing Google to sell Chrome and break its exclusive deals with Apple, Samsung, and others, while also sharing data with competitors.
During the remedies hearing, Alphabet CEO Sundar Pichai testified that the government’s proposals would amount to a “de facto divestiture” of Google’s search business and could have unintended consequences. Meanwhile, AI firms such as OpenAI and Perplexity had expressed interest in acquiring Chrome if it were divested.
Analysts note that Google faces additional antitrust challenges, including a ruling by a Virginia federal judge that found the company holds an illegal monopoly in online advertising technology, with a remedies hearing scheduled for September.
Judge Mehta acknowledged the evolving technology landscape, particularly with AI’s growing role, and crafted the remedies “with a healthy dose of humility,” cautioning that predicting future market dynamics is not “exactly a judge’s forte.”
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