Google avoids breakup, but has to give up exclusive search deals in antitrust trial

In a significant turn of events, Google will not be broken up as part of the ongoing antitrust case, yet a federal judge has imposed strict modifications on the tech giant’s business practices. U.S. District Court Judge Amit P. Mehta has tentatively mandated that Google refrain from entering or maintaining exclusive agreements that link the distribution of its services, such as Search, Chrome, Google Assistant, or Gemini, to other applications or financial arrangements. This ruling means that Google will no longer be allowed to tie Play Store licensing to the distribution of specific apps or to condition revenue-sharing payments on retaining certain applications. Additionally, the company must provide essential search index and user interaction data to designated competitors, ensuring that it does not engage in exclusionary practices. Google is also required to offer its search services and search ad syndication to rivals at standard rates, which will enable them to deliver competitive results and develop their own technologies. While a final judgment is still pending, Judge Mehta has instructed both Google and the Department of Justice to collaborate and submit a revised judgment by September 10 that aligns with his directives. This ruling follows a previous decision by Mehta, which determined that Google had acted unlawfully to preserve its monopoly in online search. To enforce the forthcoming judgment, a technical committee will be established, with the order set to be in effect for six years, commencing 60 days after its entry. The Department of Justice, which initiated the antitrust lawsuit against Google in 2020, had sought harsher penalties, including the divestiture of the Chrome browser and potentially Android. The DOJ aimed to terminate agreements where Google compensates major companies like Apple and Samsung to ensure its search engine remains the default option on their devices. Following the news, Apple’s stock surged in after-hours trading, reflecting the potential continuation of its profitable, albeit now non-exclusive, partnership with Google. In 2021 alone, Google allocated over $26 billion to maintain its default search placements on various devices, with around $18 billion directed solely to Apple, which receives 36% of its search ad revenue from Safari. During the trial, Judge Mehta underscored the importance of default placements, labeling them as "extremely valuable real estate" that effectively blocks competitors and limits their ability to contest Google’s dominance. The DOJ has also requested that Google share specific search index data and ad metrics with competitors under privacy-protected terms. Google, which has held approximately 90% of the traditional search market for the past decade, contends that the government’s demands would hinder innovation, compromise user privacy, and negatively impact its research and development capabilities. CEO Sundar Pichai has argued that forced data sharing would amount to a “de facto divestiture” of Google Search. As the remedies hearing unfolded, Judge Mehta indicated that he might draw inspiration from Europe’s Digital Markets Act, which mandates Google share certain data with third parties. However, Mehta’s ruling is narrower and more temporary than the ongoing obligations outlined in the DMA. This judgment will have broader implications for Google, particularly concerning its other antitrust challenges, including a separate case related to its advertising technology business. In April 2025, Judge Leonie Brinkema determined that Google had unlawfully monopolized ad-tech markets. A remedies trial is scheduled for late September, focusing on the DOJ’s proposed divestiture measures. Legal expert William Kovacic noted that this situation is unprecedented, with the DOJ handling two parallel cases against Google for alleged misconduct. He cautioned that although the remedies have been proposed, the legal battle is far from over, with appeals potentially extending into late 2027 or early 2028. Stay tuned for further updates on this evolving story.