Google has avoided being forced to sell its Chrome browser after a U.S. judge rejected a request from the Department of Justice in a landmark antitrust case. Instead, the court ruled that Google must share search data with competitors to level the playing field in online search.

The ruling, described as one of the most important antitrust decisions in the past two decades, sent shares of Alphabet, Google’s parent company, soaring more than 6% in New York. The Nasdaq tech index also rose, easing investor concerns over trade tensions.

Background of the Case

In August 2024, a U.S. court found Google guilty of maintaining an illegal monopoly in online search through exclusive multi-billion-dollar distribution deals with smartphone makers such as Apple and Samsung. At the time, no penalty was set.

The Justice Department later sought stronger remedies: forcing Google to sell Chrome, stop paying companies to pre-install its search engine, and limit investments in artificial intelligence firms. Judge Amit Mehta rejected the Chrome demand as “extremely complex and risky,” ruling the government had exceeded its authority.

Instead, Google must now share its search data with rivals so they can improve their services. The company is also barred from signing exclusive contracts with phone makers, though it may still compensate partners like Apple and Mozilla.

Court’s Reasoning

Judge Mehta emphasized how the landscape of search has changed since the case began in 2020, citing the rise of artificial intelligence competitors such as OpenAI. “These companies are in a better position to challenge Google than any traditional search rival has been for decades,” he wrote.

While the decision is seen as a victory for Google, some experts described it as a “Pyrrhic victory.” Law professor Carl Tobias of the University of Richmond noted the company will now be forced to rethink its long-term strategy under tighter oversight.

A technical committee will supervise Google’s compliance with the new measures, set to take effect within 60 days of the final ruling, expected by September 10.

Wider Legal Challenges

The case is part of a broader U.S. effort, under both Republican and Democratic administrations, to rein in the power of Big Tech. Five major antitrust suits are currently underway against companies including Google, Meta, Apple, and Amazon.

Google also faces a separate case in Virginia over its advertising business, where another federal judge previously found it held an illegal monopoly that stifled competition.

Google’s Reaction

Google welcomed the decision to keep Chrome, calling it recognition of how artificial intelligence has reshaped the industry. “Competition is intense and people have more ways than ever to find information,” said Lee-Ann Mulholland, the company’s vice president for regulatory affairs.

Still, Google expressed concern over being required to share user data, warning it could affect both customers and privacy protections.