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Judge Mehta’s ruling against divestiture of Google’s Chrome and Android sends a positive signal for Meta’s FTC case
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U.S. District Judge Amit Mehta ruled against the divestiture of Google’s Chrome Browser and Android Operating System, which were considered the harshest remedies.
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In his ruling, judge Mehta said the Justice Department’s proposals went too far, including its request for divestiture of Chrome Browser.
“Plaintiffs overreached in seeking forced divesture of these key assets, which Google did not use to effect any illegal restraints,” Mehta wrote.
”But the complete divestiture of Chrome is a poor fit for this case. For one, the D.C. Circuit has instructed that “divestiture is a remedy that is imposed only with great caution, in part because its long-term efficacy is rarely certain.”
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Mehta said the competitive dynamics are changing, largely due to AI.
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Mehta also ruled that Google can still make payments to companies to preload products but it cannot have exclusive contracts.
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Mehta said preventing Google from paying for distribution could cripple many other companies (such as Mozilla) and hurt consumers.
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Alphabet shares are up 6% premarket following the ruling.
Assessment
The ruling sends a positive signal for the Meta-FTC antitrust case. Judge Mehta acknowledged that market dynamics are shifting, particularly due to AI. In Meta’s case, TikTok’s entry changed the competitive landscape, and Judge Boasberg appeared receptive to this argument during trial. Mehta also found that the Justice Department’s remedies went too far, reinforcing that a breakup of Instagram and WhatsApp would be difficult to achieve.