Google will not have to divest its Chrome browser or Android operating system as part of the antitrust ruling in the U.S. CNBC's Arjun Kharpal discusses the implications for Google and Apple.

San Francisco

A recent antitrust ruling determined that Google will not be required to break up its business or divest major assets such as Chrome or Android. This outcome is significant for Google's artificial intelligence ambitions, as it allows the company to continue integrating its AI products, like Gemini, across its ecosystem. The ruling also permits Google to maintain its agreement with Apple, paying billions to remain the default search engine on Apple devices, which is seen as beneficial for both companies.

The remedies imposed by the court are considered mild compared to what some had anticipated. The presence of competitive products, such as ChatGPT and other AI chatbots, was cited as evidence that Google faces real competition, which influenced the court's decision. The outcome is expected to have implications for other ongoing lawsuits in the technology sector.

Google antitrust case: What the ruling means for Alphabet and Apple

Two big points, I think. One, that Google doesn't have to break up its business, doesn't have to divest Chrome, doesn't have to get rid of Android. And that's key for its AI ambitions. The way Gemini is going to be successful is Google's ability to lock people into the Google ecosystem and keep them locked into those Gemini products, which will eventually expand across the Google portfolio. Android is very key right now, but we've seen it also in Search, in Chrome, and likely other products as well. So that's huge for Google's own ambitions and its ability to fend off perplexity in open AI. The last bit for Apple is Google pays billions of dollars to Apple to be the default search engine on Safari, on the iPhone, and other of Apple's products as well. And so it's going to be allowed to continue to do that. And that's a positive for Apple because, one, it has the leading search engine. But two, also, it's still getting billions of dollars from Google. The Dan Ives commentary this morning says government folds like a cheap suit. I mean, it's a harsh verse, but I hear what he's saying. You know, the antitrust measures and remedies seem very mild compared to what, as you say, they could have been. What ramifications does this have for other key lawsuits in the area as well? Because, of course, there was a time when people feared that Trump would be going after the big tech companies aggressively. It appears that's not necessarily the case now? No, it doesn't seem to be. They're continuing to invest in some of these AI firms as well. And I think one of the best things that happened to Google around, remember, this case was, I think, started to go to trial in September 2023. So it was a while back. And around that time, you know, Chat GPT was continuing to explode in popularity. I think one of the best things for Google is the fact that Chat GPT came out because it showed there can be competitive products. And that is one of the arguments they put across. Everyone's worried about Google now is, oh, because of AI, you're going to lose that dominance in search. So that's saved their bacon in this judgment. I believe so. That and perplexity and all these other things. And he mentioned it, I think the judge did, didn't he? He did. He did mention it. And Google used that as an argument, saying, hey, look, well, if we're the dominant player, what about all these other players come in to effectively challenge us in what is our core business? And so I do believe that, actually, that the launch of Chat GPT and all these other chatbots has been a help to Google in this case and why, perhaps, this outcome is what it is.

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