Google Wins Antitrust Battle: Keeps Chrome, Apple Payments, Ordered to Share Data

A U.S. judge ruled on Tuesday that Google will not have to sell its Chrome browser, a rare victory for Big Tech against American antitrust enforcers. However, Google must share data with rivals to foster competition in online search.

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This ruling also permits Google to continue making significant payments to Apple, which antitrust enforcers had argued restricted competition. Google parent Alphabet's shares rose 7.2% in extended trading on Tuesday, while Apple shares increased by 3%.

U.S. District Judge Amit Mehta also allowed Google to retain its Android operating system. Chrome and Android collectively power Google's market-dominant online advertising business.

The judgment stems from a five-year legal dispute between one of the world's most profitable companies and the U.S. Antitrust regulators and lawmakers have long questioned Big Tech's market control. Last year, Mehta ruled that Google holds an illegal monopoly in online search and related advertising.

Judge Mehta approached imposing remedies with "humility," he wrote, citing competition emerging from artificial intelligence (AI) companies since the case began. He noted, "Here the court is asked to gaze into a crystal ball and look to the future. Not exactly a judge’s forte."

While data sharing will strengthen Google's advertising rivals, not having to divest Chrome or Android addresses a major concern for investors. These products are considered crucial parts of Google's overall business.

Google faces a significant threat from popular AI tools, including OpenAI's ChatGPT chatbot, which are already diminishing Google's market leadership. If granted access to the required data, AI companies could enhance their development of chatbots and, in some instances, AI search engines and web browsers.

Mehta wrote, "The money flowing into this space, and how quickly it has arrived, is astonishing," stating that AI companies are already better positioned to compete with Google than any search engine developer has been in decades.

Deepak Mathivanan, an analyst for Cantor Fitzgerald, commented that the data-sharing requirements pose a competitive risk to Google, though not immediately. Mathivanan said, "It will take a longer period of time for consumers to also embrace these new experiences."

Assistant Attorney General Gail Slater confirmed on X that U.S. antitrust enforcers are considering their next steps. Google expressed concern in a blog post, stating the data sharing "will impact our users and their privacy, and we’re reviewing the decision closely."

Google has previously stated its intention to file an appeal. This means it could take years before the company is required to act on the ruling. The case is likely to reach the Supreme Court.

William Kovacic, director of the competition law centre at George Washington University, stated that Mehta "has chosen remedies that stand a good chance of acceptance by the Court," aware that the Supreme Court is the likely final destination.

The ruling also brought relief to Apple and other device and web browser manufacturers. Mehta stated these companies can continue to receive advertising revenue-sharing payments from Google for searches on their devices. Morgan Stanley analysts estimated last year that Google pays Apple USD 20 billion annually.

Mehta wrote that banning these payments is less necessary amid the rise of AI, where products like OpenAI's ChatGPT "pose a threat to the primacy of traditional internet search."

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The ruling also eased conditions for device makers and others who set Google search as a default, by prohibiting Google from entering exclusive contracts. Google itself had suggested relaxing these agreements.

Its most recent deals with device manufacturers Samsung Electronics and Motorola, and wireless carriers AT&T and Verizon, permit them to load rival search offerings.

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Beyond the search case, Google is involved in litigation concerning its dominance in other markets. The company recently announced it would continue to challenge a ruling requiring it to overhaul its app store in a lawsuit won by "Fortnite" maker Epic Games.

Google is also scheduled to go to trial later this month to determine remedies in a separate case. This Justice Department case involved a judge finding Google holds illegal monopolies in online advertising technology.

The Justice Department's two cases against Google form part of a wider bipartisan crackdown by the U.S. on Big Tech firms. This crackdown began during President Donald Trump's first term and includes cases against Meta Platforms, Amazon, and Apple.

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• Google will not be forced to sell its Chrome browser or Android operating system.

• The company must share data with rivals to promote competition in online search.

• Google can continue making substantial payments to Apple for search revenue sharing.

Source: REUTERS