US: Google wins dismantling battle but remains under scrutiny

Judge rejects request to divest Chrome and Android, but imposes new rules on agreements and data sharing

The long legal battle between Washington and Google has reached a turning point: Federal Judge Amit Mehta has rejected the US government’s request to force the sale of Chrome and the Android operating system. According to his 230-page ruling, the Department of Justice went too far in seeking the breakup of two assets considered central to Google’s business without proving that they had been used for illegal restrictions.

New restrictions on agreements

While saving Chrome and Android, the decision imposes significant restrictions on the tech giant. Google will be prohibited from entering into exclusive agreements to ensure the distribution of its core services, from online search to the Chrome browser to Gemini artificial intelligence software. However, payments to partners such as Apple and Mozilla remain permitted, and they can continue to pre-install Google Search on iPhones and Firefox.

The billions paid to Apple and Mozilla

Significant details about agreements with partners emerged during the trial. Apple has earned billions of dollars for keeping Google Search as the default search engine on iPhones, while Mozilla relies heavily on revenue generated by Google’s integration into Firefox. In Europe, users are free to choose their search engine when they first start up their device, but the judge ruled out imposing a similar measure in the United States.

Data sharing with rivals

The ruling introduces an additional obligation: Google will have to share parts of its search index and certain information about user interactions with its competitors. This data should help other operators, such as Microsoft’s Bing, DuckDuckGo and artificial intelligence companies such as OpenAI, to develop alternative products.

Origins and developments of the case

The proceedings have their roots in the 2024 decision, which recognised Google’s monopoly in web search, obtained by defending its position with unfair practices. The trial in Washington aimed to define the consequences of that ruling. Despite the partial victory, Google has already announced its intention to appeal, paving the way for a legal battle that is set to continue.

Immediate effects on the stock market

The decision had an immediate impact on the financial markets. In after-hours trading, shares in Alphabet, Google’s parent company, rose 7%, while Apple recorded a 3% increase. This is a sign that investors have welcomed a verdict seen as a favourable compromise for the Mountain View giant.

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