New York: In a landmark ruling in the ongoing U.S. antitrust case against Google, a federal judge has allowed the company to retain ownership of its Chrome browser and Android operating system, while mandating that Google share certain search data with competitors to promote competition in the online search market. The decision has significant implications for Google, Apple, and the broader technology industry.
Following the ruling, Alphabet Inc., Google's parent company, saw its stock surge by 7.2 percent in after-hours trading, while Apple Inc. also experienced a 3 percent rise in its stock price. Investors welcomed the ruling, which preserves Google's control over its core products while imposing targeted restrictions.
The judge rejected the U.S. Department of Justice's request to force Google to divest Chrome and Android, deeming such measures excessive and potentially disruptive. However, Google is required to provide competitors access to search query data and search index information, enhancing opportunities for rival search platforms. The company is also prohibited from entering exclusive agreements that prevent device manufacturers from installing competing search engines and applications.
The ruling allows Google to continue its revenue-sharing agreement with Apple, under which Google pays Apple roughly \$20 billion annually to be the default search engine on Apple devices. This ensures continued financial benefits for Apple while maintaining competitive fairness in the search market.
The court's decision also took into account the rise of generative AI technologies, such as ChatGPT and Perplexity, which have introduced new competitive pressures to traditional search engines. These considerations influenced the limited remedies imposed on Google.
Google has expressed concerns about the impact of the mandated data-sharing on user privacy and is reviewing options to appeal the ruling. Analysts note that the case is part of a broader U.S. initiative to address antitrust concerns in the technology sector, which also involves companies like Meta, Amazon, and Apple.
The ruling represents a pivotal moment in U.S. antitrust enforcement, balancing the protection of competition with the preservation of major tech platforms’ core operations.