Alphabet’s Google has escaped a forced breakup after a Washington, DC judge decided the search giant may keep both its Chrome browser and Android mobile software, while ordering it to loosen distribution contracts and share key search data with rivals.

In a 230-page judgment, judge Amit Mehta said prosecutors “overreached in seeking forced divestiture of these key assets”, concluding that selling Chrome would be “incredibly messy and highly risky” for consumers. The court instead barred Google from striking exclusive deals that set its services as the default on devices, though it can still pay partners such as Apple for preferential placement provided agreements are non-exclusive.

As part of the remedies, Google must give “qualified competitors” a one-off snapshot of portions of its search index and query data. Mehta argued that lifting the informational barrier is essential because newcomers “will have to compete on innovation and differentiation”.

Google welcomed the narrower outcome but voiced privacy worries. “We have concerns about how these requirements will impact our users and their privacy, and we’re reviewing the decision closely,” said Lee-Anne Mulholland, vice-president of regulatory affairs,

Regulators claimed victory while hinting at further action. “The ruling recognises the need for remedies that will pry open the market for general search services,” assistant attorney general Abigail Slater said, adding that the justice department is assessing “additional relief”.

Critics argued the measures fall short. DuckDuckGo founder Gabriel Weinberg said the order “will not force the changes necessary to adequately address Google’s illegal behaviour”. Nidhi Hegde, executive director of the American Economic Liberties Project, called the decision a “complete failure”, quipping, “You don’t find someone guilty of robbing a bank and then sentence him to writing a thank-you note for the loot”.

Investors appeared relieved: Alphabet’s shares rose as much as 8.7 per cent in after-hours trading, while Apple gained 4.3 per cent, reflecting expectations that existing revenue-sharing deals worth an estimated $20 billion a year to Apple will continue.

The parties must submit a detailed remedial plan by 10 September, after which appeals are likely. Even so, the decision provides a template for forthcoming antitrust battles involving Meta, Amazon and Apple, and ensures Google’s concessions will be scrutinised as generative AI reshapes the search market.

---