Google antitrust ruling: Why the search giant escaped major disruption

Google antitrust ruling: Why the search giant escaped major disruption

Google emerged largely unscathed on Tuesday from a long-running antitrust case after a federal judge ordered only limited remedies, allowing the company to maintain the heart of its search business and its lucrative partnership with Apple, the New York Times reported.

Judge Amit P. Mehta ruled that while Google had abused its monopoly in online search, it would not be forced into a breakup or banned from paying Apple billions of dollars annually to remain the default search engine on iPhones. Instead, Google will share some data with competitors and establish an oversight committee to monitor compliance.

Data sharing required but limited

The court directed Google to provide rival search companies with a narrow set of search results data to help them improve their services. Regulators had sought access to Google’s full index and its extensive database of people, places and things, but Judge Mehta rejected those requests. The ruling leaves Google’s most valuable assets intact while creating potential privacy and compliance challenges around the data it must release.

Oversight modelled on Microsoft’s case

Google will also create a five-member antitrust technical committee, including privacy experts, to ensure the company follows the ruling. The measure is similar to the oversight arrangement imposed on Microsoft following its own antitrust battle two decades ago.

Apple deal continues

The Justice Department had urged the court to stop Google from paying Apple about $20 billion each year to be the default search engine on iPhones, arguing the deal discouraged competition. Judge Mehta allowed the arrangement to stand, warning that banning the payments could harm consumers by pushing device makers to adopt weaker search engines or raise prices. The decision also secures a major source of profit for Apple, which analysts estimate could have lost 15 percent of its annual earnings.

Chrome avoids divestiture

Another key win for Google came when the judge declined to order the company to sell its Chrome browser, despite its dominant 50 percent market share in the United States. Regulators had argued that Chrome reinforced Google’s monopoly, but Judge Mehta said forcing a divestiture would not fit the case.

Markets react positively

Investors welcomed the ruling, sending Google’s parent Alphabet up more than 8 percent in after-hours trading. Apple shares rose more than 3 percent. The government is expected to appeal, meaning the case could ultimately reach the Supreme Court.

For now, however, the decision leaves Google’s core search empire and its most lucrative business practices intact, even as rivals like Microsoft and OpenAI look for ways to benefit from the limited data-sharing requirement.