Antitrust lawsuit against Google: Judge ruled against splitting the company, but imposed new limits

The U.S. District Court for the District of Columbia ruled in the landmark antitrust lawsuit against Google. This is the second phase of the case, which already found the company guilty of violating antitrust laws in August 2024. In the remedies stage, Judge Amit Mehta ordered Google to share its search results and some data to rival companies, although it will not be forced to split.

The lawsuit against the tech giant was filed by the Department of Justice in 2020, joined by several states including Florida, Arkansas and Georgia, among others. The argument was that Google was monopolizing internet searches through exclusive contracts, an alleged violation of Section 2 of the Sherman Act, and its control over advertising.

In response, Google denied any illegal conduct, arguing that it reached its dominant position thanks to the quality of its products. In turn, it argued that being forced to sell off parts of its business would harm consumers and damage incentives to innovate.

In August 2024, Judge Mehta ruled that Google did indeed violate the antitrust laws, thus entering the remedies stage, in which the judge and the plaintiffs evaluate what measures should be taken to correct the illegal conduct and restore competition.

Specifically, Google will not have to divest itself of Chrome or Android, but it is prohibited from entering into exclusive contracts that block competitors and must share certain key data from its searches, so that others can improve their services.

"Unlike the typical case where the court's job is to resolve a dispute based on historic facts, here the court is asked to gaze into a crystal ball and look to the future. Not exactly a judge's forte," Mehta wrote.

"Notwithstanding this power, courts must approach the task of crafting remedies with a healthy dose of humility. This court has done so," he added.

On the DOJ's intention that Google would have to split, the judge found the option to be "incredibly complicated and highly risky."

Investors appeared to interpret the ruling as a win for Google, as the share price of its parent company, Alphabet Inc., rose 3%. It is the first government antitrust lawsuit against a modern tech giant to reach the remedies stage.