Google has avoided major trouble in one of the most important antitrust cases in the US in decades. A federal judge has ruled that the company will not be forced to sell off its Chrome browser, despite an earlier finding that Google is guilty of maintaining an illegal monopoly in online search.

Judge Amit Mehta delivered the ruling on Tuesday. Federal prosecutors had pushed for strict penalties, including breaking up Google’s search business and banning it from the browser market for five years. However, the judge rejected this demand, saying prosecutors had gone too far in asking for a forced breakup of Google’s key assets.

New ruling

Instead, the court introduced narrower restrictions. Google can no longer sign or keep exclusive distribution deals for its Chrome browser, Google Assistant, or Gemini app. These deals, which give Google default placement on devices, were seen as central to its dominance. However, the judge still allowed Google to pay device makers for placements, warning that a complete ban could cause wider harm in the market.

The decision was welcomed by investors. Google’s shares rose in after-hours trading as the ruling left its most valuable products intact and its business model mostly unchanged. But critics were unhappy. Watchdog groups called the judgment weak. The American Economic Liberties Project said the ruling failed to match the seriousness of Google’s monopoly, comparing it to “finding someone guilty of robbing a bank and then asking them to write a thank-you note for the loot.”

The case showed how Google had spent billions to ensure its search engine was the default on Apple and Samsung devices, helping it capture nearly 90% of the US search market. While Google argued that its success came from offering the best product, the judge had already declared last year that Google was a monopolist.

Judge Mehta noted that the search market is now changing with AI-powered chatbots and search engines entering the space. He warned that remedies must ensure Google doesn’t use its power to dominate the growing AI market.
Later this year, Google will face another hearing, this time over its control of online advertising technology.