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DOJ Drops Google AI Divestment Plan but Pushes Forward in Antitrust Battle

By  |  March 9, 2025
Google, legal, lawsuits, data privacy

The US Department of Justice (DOJ) has abandoned a proposal that would have required Alphabet Inc.’s Google to divest from artificial intelligence firms, including OpenAI competitor Anthropic, according to Reuters. This move was initially aimed at fostering competition in online search but was ultimately withdrawn due to potential unintended consequences in the rapidly evolving AI industry.

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    Despite dropping the AI divestment demand, the DOJ and a coalition of 38 state attorneys general continue their broader antitrust case against Google. Per Reuters, they are pushing for a court order that would compel Google to sell its Chrome browser and implement additional measures to address what a judge previously ruled was an illegal search monopoly. The legal battle remains a cornerstone in the government’s effort to regulate Big Tech and promote a competitive digital market.

    Prosecutors emphasized the broader implications of monopolistic control, stating, “The American dream is about higher values than just cheap goods and ‘free’ online services. These values include freedom of speech, freedom of association, freedom to innovate, and freedom to compete in a market undistorted by the controlling hand of a monopolist.”

    A Google spokesperson criticized the DOJ’s proposals, arguing that they far exceed the court’s decision and could negatively impact consumers, the economy, and national security. The company, which has announced plans to appeal, has also proposed alternative measures, including loosening agreements with Apple and other companies that set Google as the default search engine on new devices.

    Related: Google Urges DOJ to Scale Back Antitrust Breakup Plan, Citing National Security Risks

    Anthropic, in court filings from February, warned that forcing Google to divest from AI investments would unfairly benefit OpenAI and its partner Microsoft. According to Reuters, prosecutors acknowledged these concerns, stating that banning Google from AI investments could disrupt the industry’s ongoing development. As a compromise, they recommended that Google provide prior notice to the government before making future investments in generative AI.

    The case, overseen by U.S. District Judge Amit Mehta, is scheduled for trial in April. It is one of several major antitrust cases targeting dominant tech firms, with Apple, Meta Platforms, and Amazon also facing scrutiny over alleged monopolistic practices.

    Since former President Donald Trump’s re-election, Google has argued that the DOJ’s regulatory approach could hinder its ability to compete in AI, potentially undermining the United States’ position as a global leader in technological innovation. Trump has continued his administration’s crackdown on Big Tech and has appointed veteran antitrust attorney Gail Slater to spearhead the DOJ’s efforts.

    Per Reuters, many of the DOJ’s initial proposals from November remain unchanged, albeit with some modifications. For instance, the requirement that Google share search query data with competitors now includes a provision allowing Google to charge a marginal fee for access, provided the competitors do not pose a national security risk.

    Source: Reuters