Court orders Google search changes, rejects breakup of Chrome, deals

07 Sep 2025

SAN FRANCISCO, California: A U.S. judge has ordered Google to change how its search engine operates, curbing tactics he deemed monopolistic but stopping short of the harshest penalties sought by regulators, including dismantling its Chrome browser or banning lucrative default search deals.

In a 226-page ruling, U.S. District Judge Amit Mehta laid out remedies meant to rein in Google’s dominance while acknowledging that rapid advances in artificial intelligence are already reshaping how people search for information. The decision follows a nearly five-year Justice Department antitrust case that began under Donald Trump and was carried forward by Joe Biden’s administration.

“Unlike the typical case where the court’s job is to resolve a dispute based on historic facts, here the court is asked to gaze into a crystal ball and look to the future. Not exactly a judge’s forte,” Mehta wrote.

The order bars Google from signing exclusive contracts that position its search engine, Gemini AI app, Play Store, or virtual assistant as the only option on devices. Google must also share parts of its search data — information gathered from trillions of user queries — with rivals to level the playing field.

Still, the ruling left untouched Google’s multi-billion-dollar agreements that make it the default search engine on smartphones and browsers, including Apple’s Safari. Mehta said ending those deals could backfire, depriving companies of key revenue while doing little to change consumer behavior. Apple alone receives more than US$20 billion a year from Google for its default status.

Mehta also declined the Justice Department’s push to force a divestiture of Chrome, calling it “incredibly messy and highly risky.” Tech rivals, including Perplexity and OpenAI, had already signaled interest in buying the browser, with Perplexity even making an unsolicited $34.5 billion offer last month.

The decision drew mixed reactions. Antitrust chief Gail Slater called it “a major win for the American people” but said the DOJ was weighing whether the relief goes far enough. Google portrayed the ruling as validation of its defense that the industry has changed dramatically with AI: “Competition is intense and people can easily choose the services they want,” said Lee-Anne Mulholland, vice president of regulatory affairs.

Critics, however, said Mehta had gone too easy. “You don’t find someone guilty of robbing a bank and then sentence him to writing a thank you note for the loot,” argued Nidhi Hegde of the American Economic Liberties Project.

Investors appeared to agree with Google’s take. Shares of parent company Alphabet surged more than seven percent in after-hours trading, adding nearly $200 billion in market value. Apple’s stock also climbed three percent.

The ruling does not end Google’s legal troubles. Another antitrust trial targeting its advertising business is set to begin later this month in Virginia, raising the prospect of further battles over the company’s power.

 

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