DOJ drops plan to force google to sell AI investments, but pushes for chrome divestiture.

The U.S. Department of Justice (DOJ) on Friday dropped a proposal that would have forced Google (Alphabet Inc.) to sell its AI investments, including its stake in OpenAI competitor Anthropic. However, the DOJ is still seeking a court order requiring Google to divest its Chrome browser and take other steps to address its search monopoly.

Key Developments:

  • The DOJ no longer seeks to block Google’s AI investments, citing concerns about unintended consequences in the evolving AI sector.
  • Prosecutors still want Google to provide prior notice to the U.S. government before making future AI investments.
  • Google plans to appeal and argues that the DOJ’s approach would harm U.S. economic and technological leadership.
  • A trial on proposed remedies is scheduled for April, with Judge Amit Mehta overseeing the case.

Why It Matters:

  • If Chrome is separated from Google, it could weaken Google’s dominance in online search and impact its advertising revenue.
  • Big Tech under scrutiny: The case is part of broader antitrust actions against Apple, Meta, and Amazon, as Trump continues his crackdown on monopolistic practices.
  • Bipartisan Support: Democratic and Republican attorneys general, along with the Alphabet Workers Union, support proposed restrictions on Google’s market power.

Next Steps:

  • The DOJ will refine its legal strategy ahead