The US Department of Justice (DOJ) has decided not to proceed with a plan that would have required Alphabet’s Google to sell its stakes in AI firms, including Anthropic, a competitor to OpenAI. This proposal by the DOJ was initially aimed at increasing competition within the online search sector.
Despite this change, the DOJ, along with 38 state attorneys general, continues to seek a court order for Google to divest its Chrome browser and implement other measures to address what has been identified as an illegal search monopoly. These intentions were detailed in documents filed with a Washington court.
“The American dream is about higher values than just cheap goods and ‘free’ online services,” prosecutors wrote. “These values include freedom of speech, freedom of association, freedom to innovate, and freedom to compete in a market undistorted by the controlling hand of a monopolist.”
“Sweeping proposals continue to go miles beyond the Court’s decision, and would harm America’s consumers, economy and national security,” a Google spokesperson said.
Efforts to regulate major technology firms began during President Donald Trump’s first term and have continued under President Joe Biden. Trump in his second term has appointed antitrust attorney Gail Slater to lead the DOJ’s regulatory initiatives.
Google’s minority stake in Anthropic is valued at billions. In a February court filing, Anthropic argued that losing this investment could benefit OpenAI and its partner Microsoft.
Court documents reveal ongoing efforts to curb Google’s market dominance
Prosecutors noted that evidence collected since their initial draft recommendation in November 2024 showed a risk that banning Google from AI investments “could cause unintended consequences in the evolving AI space.” In their final recommendation, they requested that Google provide advance notice to the government regarding future investments in generative AI.
Planning to appeal, Google has proposed measures such as relaxing agreements with Apple and others that make it the default search engine on new devices. US District Judge Amit Mehta has scheduled a trial for these proposals in April.
This case is part of a broader series of antitrust actions against major tech companies in the US. Apple, Meta Platforms, and Amazon.com also face similar allegations of maintaining monopolistic practices in their markets.
Following Trump’s re-election, Google has argued that the DOJ’s approach could restrict its ability to compete in AI and potentially impact “America’s global economic and technological leadership.”
Last November, the DOJ intended to ask the judge overseeing Google’s antitrust trial to mandate the divestiture of Alphabet’s Chrome browser as part of a broader antitrust case against the search engine giant. This follows an August 2024 ruling by Judge Mehta, which found that Google had unlawfully monopolised the search market.
The Chrome browser, which captures about two-thirds of the worldwide browser market, is integral to Google’s advertising framework. It channels users to Google search and collects data, allowing the company to enhance its targeted advertising methods. The US government attorneys contend that this level of control restricts competition and hinders the development of alternative markets.
Read more: US DoJ reportedly wants Google to divest Chrome amid antitrust measures
