US Abandons Attempt to Force Google to Divest Anthropic Investments in Antitrust Lawsuit
The US Department of Justice Drops Proposal to Force Google to Sell AI Investments
The US Department of Justice has decided to drop a proposal that would have required Alphabet’s Google to sell its investments in artificial intelligence companies. This includes selling its stake in Anthropic, a competitor of OpenAI. The decision was made in an effort to boost competition in online search.
Court papers filed in Washington show that the DOJ and a coalition of 38 state attorneys general are still seeking a court order for Google to sell its Chrome browser and take other measures to address what a judge deemed as Google’s illegal search monopoly. The goal is to create a more level playing field and ensure fair competition in the market.
Protecting American Values and Competition
In their court filing, prosecutors emphasized the importance of upholding American values beyond just offering cheap goods and free online services. They highlighted the significance of freedom of speech, freedom of association, freedom to innovate, and freedom to compete without the influence of a monopolist.
A spokesperson for Google expressed concerns about the sweeping proposals, stating that they extend far beyond the court’s decision and could have negative impacts on consumers, the economy, and national security. Meanwhile, a representative for Anthropic did not immediately respond to requests for comment on the matter.
Continued Efforts Against Big Tech
President Donald Trump has made it clear that he intends to continue cracking down on Big Tech companies, a campaign that began during his first term and has carried over into the Biden administration. To spearhead these efforts, Trump has appointed antitrust attorney Gail Slater to lead the DOJ’s initiatives.
Google’s Stake in Anthropic
Google currently holds a minority stake in Anthropic, which is valued at billions of dollars. If Google were forced to divest this investment, it could potentially give a competitive advantage to OpenAI and its partner Microsoft, as noted in a communication from Anthropic to the court earlier this year.
Risks and Consequences
Prosecutors have acknowledged that banning Google from AI investments could have unintended consequences in the rapidly evolving AI space. As a result, they have proposed that Google be required to provide advance notice to the government about any future investments in generative AI.
Ongoing Legal Battle
Google has indicated that it intends to appeal the decision, and a trial on the proposed measures is scheduled for April before US District Judge Amit Mehta. This case is just one of several antitrust actions being taken against major tech companies, including Apple, Meta Platforms, and Amazon.com.
Implications for the Tech Industry
Since Trump’s reelection, Google has been vocal about the potential negative impacts of the DOJ’s approach on the company’s ability to compete in AI and maintain America’s leadership in the global economic and technological landscape. The outcome of this case could have far-reaching implications for the tech industry as a whole.
Support for the Proposals
The proposal put forth by prosecutors has garnered support from both Democratic and Republican attorneys general, as well as the Alphabet Workers Union-CWA. Despite some tweaks to the original recommendations, many of the measures remain intact and are seen as crucial steps towards promoting fair competition in the market.
As the legal battle unfolds, the tech industry and regulatory landscape are likely to see significant changes that could shape the future of competition and innovation in the digital sphere.
© Thomson Reuters 2025