The U.S. Department of Justice (DOJ) has backed down from its attempt to force Google to divest its artificial intelligence (AI) investments, including its multi-billion-dollar stake in Anthropic, a competitor to OpenAI. This decision represents a shift in the ongoing legal battle over Google’s dominance in online search.
DOJ Revises Its Approach to Google’s Alleged Monopoly
On March 7, the DOJ, along with 38 state attorneys general, filed court documents outlining their revised strategy in the landmark antitrust case against Google. While the government is no longer pushing for Google to sell its AI investments, it still seeks a court order to make Google sell its Chrome browser and implement other measures aimed at reducing its monopoly in online search.
Prosecutors argued that Google’s control over online search stifles competition and innovation. They emphasized that the American dream is built on fair competition, freedom of innovation, and an open market, not on monopolistic control.
A spokesperson for Google dismissed the revised proposal, calling it an overreach that goes far beyond the court’s ruling and could harm consumers, the economy, and national security.
The AI Investment Controversy
Google holds a minority stake worth billions of dollars in Anthropic, a company developing advanced AI technology similar to OpenAI’s ChatGPT. Losing this investment would likely give OpenAI and its partner Microsoft a significant advantage in the AI race.
In February, Anthropic warned the court that banning Google from investing in AI could harm the overall industry and weaken America’s leadership in AI development. This concern ultimately influenced the DOJ’s decision to drop its push for forced divestment.
However, the DOJ still wants Google to notify the government before making any future AI investments, ensuring regulatory oversight over its expansion in the field of generative AI.
Google Fights Back
Despite the DOJ’s revised stance, Google is not backing down. The company plans to appeal the ongoing case, arguing that the DOJ’s antitrust crackdown could cripple its ability to compete in AI and threaten U.S. technological leadership.
Google has also submitted its own proposal to the court, suggesting looser agreements with companies like Apple to reduce its influence as the default search engine on new devices. A trial on these proposals is set to begin in April 2025 under U.S. District Judge Amit Mehta.
Big Tech Under Fire
The Google antitrust case is just one of many lawsuits targeting Big Tech companies. Other tech giants, including Apple, Meta (Facebook), and Amazon, are also facing legal scrutiny for allegedly maintaining illegal monopolies in their respective markets.
Since Donald Trump’s reelection, the pressure on Big Tech has intensified. Trump, who started the crackdown during his first term, has reaffirmed his commitment to reining in corporate monopolies. He has appointed Gail Slater, a veteran antitrust attorney, to lead the DOJ’s efforts against Google and other tech giants.
The Road Ahead
While the DOJ has softened its stance on Google’s AI investments, the battle over its dominance in online search is far from over. With regulators, politicians, and competitors all closely watching, the outcome of this case could reshape the future of AI, digital advertising, and online search in the United States.
