Antitrust Judge Declares Google Not Required to Divest Chrome or Android, Calling Remedies an “Overreach”

This article does not constitute investment advice. The author holds no positions in any of the stocks mentioned herein.

Recent Court Ruling: A Win for Google

In a significant development for Google and its parent company, Alphabet, a federal antitrust judge has dismissed some of the most drastic remedies proposed by the Department of Justice (DOJ) in response to accusations of monopolistic behavior.

Background of the Case

For those unfamiliar, the DOJ initiated a legal challenge against Google in September 2023, alleging that the tech giant maintained its status as the default search engine on various platforms, including browsers and smartphones, through substantial financial incentives offered to partners like Apple. Additionally, certain state attorneys general launched parallel antitrust cases focused on Google’s advertising operations and its exclusionary agreements with various partners.

Court Findings

In a ruling handed down in 2024 by US District Court Judge Amit Mehta, it was determined that Google violated antitrust laws by upholding an illegal monopoly within the search engine sector. This prompted a subsequent remedy trial that wrapped up in early May 2025. Notably, the DOJ had sought to compel Alphabet to divest the Chrome browser along with its open-source Chromium project, indicating interest from prospective buyers including Yahoo, OpenAI, and Perplexity.

Alphabet countered by asserting that divesting Chrome would jeopardize user privacy and security, given the deep integration of Google’s proprietary technologies within the browser ecosystem.

Key Decisions and Implications

In a recent ruling, Judge Mehta prohibited Google from entering into exclusive agreements designed to secure preferential treatment for its search engine on various platforms. The court also mandated that Google share certain data with competing search engines. However, the judge refrained from enforcing a divestiture of either the Chrome browser or the Android operating system, describing the DOJ’s request as “overreach.”Importantly, Google will still be able to pay for the distribution of its services, including its search engine and AI offerings, provided these agreements are not exclusive.

Emerging Competition and Future Developments

Judge Mehta acknowledged the emergence of generative AI chatbots as a “nascent competitive threat”to Google, indicating that his rulings aim to prevent Google’s continuous dominance in search from extending into the AI realm. Consequently, Google could continue to pay Apple approximately $20 billion annually to have its search engine featured on the Safari browser, albeit under a non-exclusive arrangement that may lower this cost.

Google has signaled its intent to appeal the ruling, particularly contesting the liability related to its exclusivity arrangements.

Acquisition Interests and Market Valuation

In a noteworthy development earlier in August, Perplexity AI expressed interest in acquiring Google Chrome with a bid of $34.5 billion, which did not receive serious consideration from the tech giant. It’s interesting to note that Perplexity is currently valued at approximately $18 billion. Despite this, Perplexity AI offered a commitment to continue supporting Google’s open-source Chromium project as part of their proposal.

While the exact enterprise value of Chrome remains uncertain, recent estimates suggest it could fall between $20 billion and $50 billion.

Ongoing Legal Challenges

Alphabet is also preparing for a remedy trial concerning its advertising technology, following a finding of illegal monopoly in this area as well. Furthermore, the company faces antitrust implications in the ongoing Epic vs. Google case, where a federal jury ruled in December 2023 that Google wielded monopoly power over Android app distribution and in-app billing services.

As the legal landscape continues to develop, both regulators and technology companies will be watching closely to see how these rulings impact the competitive dynamics within the tech industry.

Source & Images