Finish Google Day

A federal judge on Tuesday ordered a shake-up of Google's search engine in a crackdown aimed at curbing the corrosive power of an illegal monopoly while rebuffing the U.S. government's attempt to break up the company and impose other restraints.

The 226-page decision made by U.S. District Judge Amit Mehta in Washington, D.C., will likely ripple across the technological landscape at a time when the industry is being reshaped by breakthroughs in artificial intelligence — including conversational "answer engines" as companies like ChatGPT and Perplexity try to upend Google's long-held position as the internet's main gateway.

A federal judge on Tuesday ordered a shake-up of Google's search engine in a crackdown aimed at curbing the corrosive power of an illegal monopoly while rebuffing the U.S. government's attempt to break up the company and impose other restraints.

The 226-page decision made by U.S. District Judge Amit Mehta in Washington, D.C., will likely ripple across the technological landscape at a time when the industry is being reshaped by breakthroughs in artificial intelligence — including conversational "answer engines" as companies like ChatGPT and Perplexity try to upend Google's long-held position as the internet's main gateway.

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The innovations and competition being unleashed by generative artificial intelligence, or "GenAI," have reshaped the judge's approach to remedies in the nearly five-year-old antitrust case.

"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.

Investors seemed to interpret the ruling as a relatively light slap on the wrist for Google, as the stock price of its corporate parent, Alphabet Inc., surged nearly 3% in extended trading.

Allowing the default search deals to continue is more than just a victory for Google. It's also something that Apple, which receives more than $20 billion annually from Google, and the beneficiaries of the payments urged Mehta to maintain.

In hearings earlier this year, Apple warned the judge that banning the contracts would deprive the company of money that it funnels into its own innovative research. The Cupertino, California, company also cautioned that the ban could have the unintended consequence of making Google even more powerful by pocketing the money it had been spending on deals while most consumers will still end up flocking to Google's search engine anyway.

Others, such as the owners of the Firefox search engine, asserted that losing the Google contracts would threaten their future survival by depriving them of essential revenue.

Allowing the default search deals to continue is more than just a victory for Google. It's also something that Apple, which receives more than $20 billion annually from Google, and the beneficiaries of the payments urged Mehta to maintain.

In hearings earlier this year, Apple warned the judge that banning the contracts would deprive the company of money that it funnels into its own innovative research. The Cupertino, California, company also cautioned that the ban could have the unintended consequence of making Google even more powerful by pocketing the money it had been spending on deals while most consumers will still end up flocking to Google's search engine anyway.

Others, such as the owners of the Firefox search engine, asserted that losing the Google contracts would threaten their future survival by depriving them of essential revenue.