WASHINGTON: A federal judge has ruled that Alphabet’s Google will not be forced to sell its Chrome browser or Android operating system following a major antitrust case.
The decision represents a significant victory for Google despite requirements to share valuable search data with competitors to foster online search competition.
Alphabet shares surged 7.8% in extended trading as investors welcomed the ruling’s avoidance of structural breakup measures.
While data sharing strengthens rivals in Google’s dominant advertising market, preserving Chrome and Android removes major investor concerns about core business fragmentation.
Cantor Fitzgerald analyst Deepak Mathivanan noted that data-sharing requirements pose competitive risks to Google but not immediately.
“It will take a longer period of time for consumers to also embrace these new experiences,” he said.
The ruling also benefits Apple and other device manufacturers who can continue receiving advertising revenue-sharing payments from Google searches on their products.
Google pays Apple twenty billion dollars annually according to Morgan Stanley analysts’ estimates from last year.
The court’s decision facilitates easier installation of rival apps by device makers who set Google search as default.
Google previously stated its intention to appeal the ruling, potentially delaying implementation for years.
CEO Sundar Pichai testified in April that Justice Department data-sharing measures could enable rivals to reverse-engineer Google’s proprietary technology.
Judge Amit Mehta did not order full data disclosure as prosecutors requested and noted significant implementation challenges for competitors.
“For starters, this remedy requires only disclosure of underlying data; it will be up to [the competitors] to engineer the technology and develop the infrastructure to make use of it,” he wrote.
The ruling concludes a five-year legal battle where Mehta previously found Google maintains an illegal monopoly in online search and advertising.
Prosecutors argued during April trial proceedings for comprehensive remedies to restore competition and prevent search dominance extension into artificial intelligence.
Google contended that proposed measures exceeded legal justification and effectively gifted technology to competitors.
Beyond this search case, Google faces additional litigation concerning dominance in other markets including app stores and advertising technology.
The company will challenge a ruling requiring app store reforms following Epic Games’ successful lawsuit.
Another trial later this month will determine remedies for Google’s illegal monopolies in online advertising technology per separate Justice Department findings.
These cases form part of broader bipartisan US actions against major technology firms initiated during President Donald Trump’s first term. – Reuters
