DOJ Drops Google AI Divestment Demand, Keeps Pressure on Chrome

• The Department of Justice (DOJ) has withdrawn its demand for Google (GOOG) to sell its investments in AI companies like Anthropic, while maintaining that the search giant should divest its Chrome Internet browser to address what a judge ruled was an illegal search monopoly.
• Google has responded forcefully to the updated DOJ proposal, claiming the sweeping demands exceed the court’s decision and would harm American consumers, the economy, and national security.
• This strategic shift in the DOJ’s approach highlights a focus on addressing Google’s existing market dominance through Chrome rather than potential future AI monopolization, occurring amid broader scrutiny of major technology companies’ market power.

The Department of Justice (DOJ) has withdrawn its efforts to force Google (GOOG) to sell its investments in artificial intelligence companies, including Anthropic, according to a report from CNBC’s Joe Kernen. This significant shift in the government’s antitrust strategy was revealed late Friday when the DOJ filed an updated proposal for remedies in its ongoing antitrust case against the tech giant.

While backing away from demands regarding AI divestiture, the Justice Department is maintaining its position that Google should sell off its Chrome Internet browser. This remedy is intended to address what a federal judge ruled last year was Google’s illegal search monopoly. Chrome serves as a critical access point to Google’s search engine, with its default settings playing a key role in reinforcing Google’s dominant market position.

The original DOJ proposal had targeted Google’s investments in AI companies as part of a broader effort to prevent the tech giant from extending its alleged monopolistic practices into emerging technologies. Anthropic, backed by Google’s substantial investment, represents one of the few companies capable of competing with OpenAI in the development of advanced AI systems. The decision to drop this demand suggests a recalibration of the government’s priorities in the case or potential challenges in legally justifying such a remedy.

Google has responded forcefully to the updated proposal. In a statement, a company spokesperson criticized the DOJ’s approach, arguing that the “sweeping proposals continue to go miles beyond the court’s decision and would harm American consumers, the economy, as well as national security.” This reference to national security likely points to concerns about American technological leadership in AI development amid intense global competition, particularly with China.

The antitrust case against Google represents one of the most significant actions taken by the U.S. government against a technology company in decades. The outcome could reshape the digital landscape, potentially altering how consumers access information online and setting precedents for future enforcement actions against major tech platforms.

The timing of this filing is particularly noteworthy as it comes during a period of intense scrutiny of major technology companies and their market power. The Biden administration has pursued an aggressive antitrust agenda, with cases against several major tech firms, while the incoming Trump administration’s approach to tech regulation and antitrust enforcement remains a subject of speculation.

As the case proceeds, the focus on Chrome rather than AI investments highlights the DOJ’s emphasis on addressing Google’s existing market dominance rather than potential future monopolization. This strategic shift acknowledges the critical role that browsers play in directing user traffic and shaping the internet experience, while perhaps recognizing the more speculative nature of claims regarding AI market control.

The resolution of this case will likely take months if not years, with appeals expected regardless of the outcome. Meanwhile, Google continues to integrate AI features across its product lineup while maintaining significant investments in companies like Anthropic, positioning itself for leadership in both current and emerging digital technologies.

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