Google Keeps Chrome but Faces New Data Sharing Order

A Washington judge ruled that Google won't be required to sell its Chrome browser, marking a rare win for big tech in the U.S. antitrust battles. However, the court ordered Google to share data with rivals to foster competition in online search. Google’s parent company, Alphabet, saw a 7.2% increase in shares after the decision, as investors welcomed the ruling, which permits Google to maintain lucrative payments to Apple, payments antitrust enforcers argue hinder search competitors. Apple’s shares rose 3%.

The ruling stems from a five-year legal fight between Google and U.S. regulators, who have long criticized Google's market dominance. Last year, a judge found Google to hold an illegal monopoly in online search and advertising. This recent decision, by U.S. District Judge Amit Mehta, also allows Google to keep its Android operating system, crucial for its dominant online advertising business.

While data sharing could benefit rivals, the ruling avoids forcing Google to sell Chrome or Android, which are critical to its revenue. The case examines how advancements in artificial intelligence, such as OpenAI's ChatGPT, are challenging Google's dominance. Sharing data with AI firms could accelerate the development of competing chatbots and search engines. AI industry experts note that competition is rapidly evolving, with AI companies better positioned than in decades past.

Legal experts and analysts suggest the ruling is a cautious step. Deepak Mathivanan from Cantor Fitzgerald predicted that the impact on Google would take time, as consumer adoption of new AI-powered products unfolds. The Department of Justice is reviewing options for next steps, with Google considering an appeal, possibly prolonging the case for years until it reaches the Supreme Court.

In addition to search, Google faces lawsuits over its dominance in other markets, including an ongoing case regarding its app store practices. The broader bipartisan U.S. crackdown on Big Tech, initiated during President Trump’s term, targets companies like Meta, Amazon, and Apple.

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The ruling is also a relief for device makers, including Apple, which receives $20 billion annually from Google’s search revenue sharing. The decision permits these companies to load rival search apps, breaking exclusivity agreements. Overall, the case reflects ongoing efforts to regulate Big Tech’s market power amid rapid technological change.

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