A US District Court in Washington has ruled that Google can retain its Chrome browser, granting the tech giant a crucial victory in a protracted antitrust case.
However, the court has also ordered Google to share data with competitors to foster greater competition in the online advertising market.
Judge Amit Mehta's decision allows Google to maintain its financial arrangements with Apple, a practice previously criticised for limiting rival search engines' market access. Following this ruling, shares of both Alphabet, Google's parent company, and Apple experienced an increase.
The legal proceedings have spanned five years, focusing on Google's dominance in the search and advertising sectors. In 2024, Judge Mehta determined that Google held an illegal monopoly in these areas.
In his latest ruling, he cited emerging pressures from AI companies as a factor influencing the competitive landscape.
Judge Mehta said: “Here the court is asked to gaze into a crystal ball and look to the future. Not exactly a judge’s forte.”
He noted that AI companies are better poised to challenge Google's market hold than traditional search engine developers have been.
While sharing data could empower Google's competitors, investors are relieved as Chrome or Android divestment is not required, reported Reuters. These elements remain critical to Google's online advertising operations.
Google has voiced concerns over privacy implications resulting from the data-sharing directive and plans to appeal the ruling. This could delay enforcement for several years, potentially leading the case to the Supreme Court.
The decision by the Washington court offers reassurance to Apple and other device manufacturers, allowing them to continue collecting advertising revenue-sharing payments from Google. Previously, Morgan Stanley analysts estimated these payments to be $20bn annually for Apple.
Additionally, the court prevents Google from signing exclusive contracts that set its search engine as the default on devices. This allows rival apps to be pre-installed more readily.
In line with this decision, Google has already adjusted agreements with partners such as Samsung and Motorola.
In parallel developments, European Union (EU) regulators are preparing an antitrust fine against Google concerning its adtech practices. Sources cited by Reuters suggest this penalty will be modest under new EU antitrust chief Teresa Ribera's strategy, which focuses on curtailing anti-competitive behaviour rather than imposing hefty fines.
While the fine was supposed to be announced on Monday (September 1), it was reportedly delayed due to a last-minute push from EU officials fearful that US President Donald Trump would retaliate by sabotaging ongoing negotiations for a transatlantic trade deal. The development undermines Ribera's repeated stance that EU policy towards big American companies would not become a bargaining chip during tariff negotiations.
