The U.S. Department of Justice (DOJ) has withdrawn its proposal to compel Alphabet’s Google to divest its investments in artificial intelligence firms, including OpenAI rival Anthropic. This move comes as part of the ongoing antitrust case targeting Google’s dominance in online search.
Despite dropping the AI investment divestiture proposal, the DOJ and 38 state attorneys general remain committed to seeking a court order that would require Google to sell its Chrome browser and take further corrective measures to curb its search monopoly. Court documents filed in Washington confirm these efforts.
Google currently holds a significant minority stake in Anthropic, valued at billions of dollars. In a February court filing, Anthropic argued that forcing Google to divest could give a competitive edge to OpenAI and its key partner, Microsoft. Neither Google nor Anthropic provided immediate comments on the latest DOJ decision.
DOJ Adjusts Strategy in Google Antitrust Battle
The DOJ initially introduced the AI divestment proposal in a draft recommendation last November. Prosecutors then gathered further evidence from Google’s competitors and AI firms, ultimately determining that banning Google from AI investments could have unforeseen consequences in the rapidly evolving AI sector. As a result, in their final proposal submitted on Friday, prosecutors requested that Google be required to notify the government before making future investments in generative AI.
In response to the broader case, Google, which has vowed to appeal, has proposed loosening agreements that set Google as the default search engine on devices such as Apple’s iPhones. A trial to determine the next steps is scheduled for April before U.S. District Judge Amit Mehta.
A Landmark Case Against Big Tech
This high-profile lawsuit, initially filed during Donald Trump’s first term, marked the beginning of a broader crackdown on Big Tech. The scrutiny has continued under subsequent administrations, with companies like Apple, Meta, and Amazon also facing antitrust challenges over alleged monopoly practices.
Since Trump’s reelection, Google has argued that the DOJ’s approach could weaken its competitive standing in AI and potentially harm U.S. leadership in global technology and economics. While some of the DOJ’s initial November proposals have been revised, key measures remain, including a requirement for Google to share search query data with competitors—though Google will now be allowed to charge for access, provided the competitors do not pose a national security risk.
As the trial approaches, the battle between Google and regulators will shape the future of online search, AI investments, and Big Tech’s role in the broader digital economy.