DOJ Drops Push to Force Google to Sell AI Investments Amid Antitrust Battle

The U.S. Department of Justice (DOJ) has abandoned its proposal to force Google (NASDAQ: GOOGL) to divest its AI investments, including its stake in OpenAI rival Anthropic, as part of its ongoing antitrust case. However, the DOJ and 38 state attorneys general continue to seek court-ordered measures to curb Google’s alleged search monopoly, including the potential sale of its Chrome browser.

Prosecutors argue that Google’s dominance stifles competition and innovation, with a monopolistic grip on search that threatens market fairness. "The American dream is about more than cheap goods and free services—it’s about freedom to compete and innovate," they stated.

Google, which plans to appeal, criticized the proposed restrictions, claiming they exceed the court’s ruling and could harm consumers, the economy, and national security. The company has instead suggested relaxing its default search engine agreements with Apple (NASDAQ: AAPL) and others. A trial on the proposals is scheduled for April.

Anthropic previously warned that forcing Google to divest its stake could unfairly benefit OpenAI and Microsoft (NASDAQ: MSFT). The DOJ acknowledged that restricting Google’s AI investments might have unintended consequences in the rapidly evolving industry. Instead, they now propose that Google provide prior notice of future AI investments.

This antitrust case is one of several targeting Big Tech, with Apple, Meta (NASDAQ: META), and Amazon (NASDAQ: AMZN) also facing monopoly allegations. Since Donald Trump’s reelection, Google has argued that the DOJ’s approach could hinder AI competition and weaken U.S. technological leadership.

Despite modifications, many DOJ proposals from November remain, including a requirement for Google to share search data with competitors, now with provisions for security and marginal fees. The case continues to draw bipartisan support and backing from the Alphabet Workers Union-CWA.