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Antitrust judge: Google does not have to sell Chrome, but stop exclusive agreements

The first big anti-monopoly case of the new tech era produces modest remedies, rejecting the government's aggressive spin-off demands. The advent of artificial intelligence has changed the market

Il logo di Google è visibile sulla Google House al CES 2024, una fiera annuale dell'elettronica di consumo, a Las Vegas, Nevada, Stati Uniti, il 10 gennaio 2024. REUTERS/Steve Marcus/File Photo

2' min read

2' min read

Antitrust remedies but 'humble'. A federal judge actually sided with Google in the landmark search engine monopoly case, rejecting the government's request to order the tech giant to sell its Chrome browser. The ruling also avoided outright banning payment and revenue-sharing agreements between Google and companies such as Apple.

The case took on a significance beyond Google itself: it was the first major appeal in the new tech era, which also sees legal battles at stake against Amazon, Apple and Meta. For a previous case of similar influence one has to go back to the 1990s with Microsoft.

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On Wall Street, the stock of Google's parent company Alphabet breathed a sigh of relief: in the after-market it gained more than 8 per cent. Apple, which in the past has grossed $20 billion a year from Google, gained 3 per cent on the stock market.

The magistrate, Amit Mehta, had previously found Google guilty of an illegal monopoly in search engines; the current decision represents the conclusion of a second phase of proceedings, dedicated to remedies. The case is not closed: further appeals are to be expected.

Google, with the new ruling, does not avoid new limits. In practice, the company will be able to continue to offer payments for the distribution of its products; what it will not be able to do is to pay to sign exclusive distribution contracts, i.e. giving priority to its search engine, its browser, or its artificial intelligence chatbot. It will also have to share search-related data with rivals to ensure adequate competition.

Mehta, however, rejected the idea of aggressive, structural and bsusiness practice interventions, hypothesised and demanded by the prosecutors in a case that has dragged on for five years, started under Donald Trump's first administration, continued under Joe Biden's, and now come to a head under Trump's second term. Numerous analysts have called the decision a clear victory for Google and Apple.

The judge explicitly mentioned the need to act with prudence, indeed using the term 'humility' when describing remedies, because the reality of competition in the market is radically changing, with an explicit reference to the advent of artificial intelligence. "Courts must approach the task of focusing on remedies with a healthy dose of humility," he said, indicating that he followed such an approach.

Again: 'There are strong reasons not to shake up the system and allow market forces to do their work,' Mehta wrote in his ruling. Ia companies "are already in a better position, financially and technologically, to compete with Google than any traditional search engine in decades," he added. Generative artificial intelligence, he stressed, 'has changed the course of this case'.

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