A judge handed Alphabet's Google a key victory on Tuesday, ruling against US prosecutors’ bid to make the tech giant sell off its popular Chrome browser and Android operating system that was part of a larger antitrust crackdown on Big Tech.

However, Google was ordered to share data with rivals to open up competition in online search.

The landmark ruling came after Judge Amit Mehta found in August 2024 that Google illegally maintained monopolies in online search through exclusive distribution agreements worth billions of dollars annually.

The US government had pushed for Chrome's divestment, contending that the browser serves as a crucial gateway to internet activity and facilitates a third of all Google web searches.

But in his ruling, Mehta warned that a Chrome divestiture "would be incredibly messy and highly risky" and said US government lawyers had overreached in making that request.

The case primarily focused on Google's expensive distribution agreements with Apple, Samsung, and other smartphone manufacturers that established Google as the default search engine on iPhones and other devices.

Under this arrangement, Google pays Apple tens of billions of dollars annually for prime placement on the iPhone.

In his decision last year, Judge Mehta concluded that Google's default status on the iPhone allowed the company to evolve into an internet powerhouse, insulated from competitive threats.

But Mehta on Tuesday said an outright ban of these deals was off the table, insisting that such a ban could have too profound an effect on other businesses.

"Cutting off payments from Google almost certainly will impose substantial – in some cases, crippling – downstream harms to distribution partners, related markets, and consumers," the ruling said.

Instead, under his order, Google must make available to "qualified competitors" search index data and user interaction information that rivals can use to improve their services.

The company must also offer search result syndication services to competitors for up to five years.

The ruling also specifically addresses the emerging threat from generative artificial intelligence chatbots like ChatGPT, extending restrictions to prevent Google from using exclusive deals to dominate the AI space as it did with traditional search.

RTHK's Silicon Valley correspondent, Mark Niu, said the tech giant could be preparing for an influx of competition that is already slowly chipping away from its dominant market share.

"This also opens the door to the up-and-coming players, especially those excelling with AI chat," he told Hong Kong Today.

"And some of those AI companies actually testified that they had difficulty getting device makers and carriers to give prominent placement to their chatbots because they feared retribution from Google."

A technical committee will oversee implementation of the remedies, which take effect 60 days after the final judgment is entered.

The parties have until September 10 to submit a revised final judgment consistent with the court's ruling.

Alphabet shares were up 7.8 percent in extended trading on Tuesday as investors cheered the judge's ruling. (RTHK/Agencies)