Google has dodged the biggest bullet in tech antitrust history. Federal Judge Amit Mehta ruled Tuesday that the search giant can keep Chrome and Android, but must end exclusive search deals and share critical data with competitors. Alphabet shares surged 6% after hours while Apple jumped 4% as their lucrative default search partnership survives with new restrictions.
Google just survived the most consequential antitrust ruling since the Microsoft case two decades ago, but the tech giant's business model faces fundamental changes that could reshape the entire search industry.
U.S. District Judge Amit Mehta delivered a split decision Tuesday that rejected the Department of Justice's most aggressive demands while imposing restrictions that strike at the heart of Google's market dominance. The ruling allows Google to retain its Chrome browser and Android operating system but forces the company to abandon the exclusive contracts that have cemented its search monopoly for over a decade.
"Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment," Mehta wrote in his decision. "Plaintiffs overreached in seeking forced divesture of these key assets, which Google did not use to effect any illegal restraints."
The market's reaction was immediate and telling. Alphabet shares rocketed 6% in extended trading as investors breathed a collective sigh of relief, while Apple stock climbed 4% on news that its billion-dollar search partnership with Google would continue under modified terms.
But the ruling's most significant impact lies in what Google must now do, not what it gets to keep. For the first time in its history, the search giant must share the proprietary data that powers its results – the clicks, queries, and user behaviors that have given it an insurmountable competitive advantage. This data sharing requirement could fundamentally alter the competitive landscape by giving rival search engines access to the insights that have made Google's results superior.
The decision stems from the landmark August 2024 ruling where Mehta found Google violated Section 2 of the Sherman Act by maintaining an illegal monopoly in internet search. The case, filed by the DOJ in 2020, alleged that Google created "strong barriers to entry and a feedback loop that sustained its dominance" through exclusive deals with device manufacturers and browser companies.
