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“Court Ruling Leaves Google Largely Untouched in Antitrust Case, Competitors Get Small Wins” 🚨🚨🚨

Hopes for a major shake-up in Big Tech dominance were dashed Tuesday when U.S. District Judge Amit Mehta issued a ruling in the high-profile antitrust case against Google (GOOGL $230.19, +8.91%). The decision stopped short of dismantling the company or forcing divestitures, such as splitting off Chrome or the Android operating system, which the Department of Justice had requested.

Instead, the judge imposed limited restrictions, including a ban on exclusive distribution deals—like Google’s previous $20 billion agreement with Apple (AAPL $237.44, +3.36%) to remain the default search engine on iPhones. However, Google can still pay for default placement, provided agreements last only one year and Apple can simultaneously work with other search engines or GenAI providers.

Additional remedies include requiring Google to share search and user data (though not advertising data) with qualified competitors to encourage competition in the general search market.

What It Means for Google

The ruling leaves Google’s core business model mostly intact. Google remains the default search engine on Chrome, the world’s most-used browser, and continues to dominate online advertising. Despite concerns about AI disruption, Google has been aggressively rolling out AI features like AI Overviews and AI Mode across its search products, which, according to Google’s Head of Search Liz Reid, has actually increased search activity.

What It Means for Apple

Apple is expected to keep taking Google’s payments—an estimated $20 billion annually, a major driver of Apple’s Services revenue. While the ruling opens the door for OpenAI, Perplexity, and Anthropic to partner with Apple, none currently match Google’s financial leverage.

What It Means for OpenAI & GenAI

Ironically, OpenAI’s ChatGPT was cited as a key reason the court avoided harsher remedies, as generative AI emerged as a competitive force during the trial. The judge wrote that GenAI has become “a nascent competitive threat,” shifting the dynamics of the case. Under the ruling, OpenAI and others will gain access to some of Google’s search and user data, potentially boosting their ability to challenge Google’s dominance.

Still, analysts like JPMorgan’s Doug Anmuth remain bullish on Google, citing its “clear competitive advantage in AI through its full-stack approach.” While the decision gives rivals a foothold, Google retains the crown in search and digital ads.