US drops bid to force Google to sell AI investments in antitrust case

The U.S. Department of Justice on Friday abandoned its proposal that would have forced Alphabet’s Google to divest its investments in artificial intelligence companies, including rival Anthropic, as part of its broader antitrust case aimed at curbing Google’s alleged illegal search monopoly.

The decision comes amid ongoing litigation and regulatory actions targeting Big Tech.

The proposal, initially drafted in November, would have required Google to sell its stakes in AI ventures in an effort to boost competition in online search. Instead, the DOJ and a coalition of 38 state attorneys general are now focusing on securing a court order that would compel Google to divest its Chrome browser and implement additional measures designed to address anticompetitive practices. In court papers filed in Washington, prosecutors argued, “The American dream is about higher values than just cheap goods and 'free' online services. These values include freedom of speech, freedom of association, freedom to innovate, and freedom to compete in a market undistorted by the controlling hand of a monopolist.”

A Google spokesperson countered that the sweeping proposals “continue to go miles beyond the Court's decision” and would harm American consumers, the economy, and national security. The company also announced that it intends to appeal the decision. Meanwhile, a spokesperson for Anthropic did not immediately respond to requests for comment.

The DOJ’s shift in focus follows evidence obtained since the draft recommendation that suggested banning Google from AI investments could lead to unintended consequences in the rapidly evolving AI sector. Instead, the government now seeks a requirement that Google provide prior notice of any future investments in generative AI. This move comes as part of a broader campaign by President Donald Trump, who has vowed to continue cracking down on Big Tech. Trump has appointed veteran antitrust attorney Gail Slater to lead the DOJ’s efforts in these cases.

Google currently holds a minority stake in Anthropic valued at billions of dollars. Critics argue that forcing a sale could inadvertently hand a competitive edge to OpenAI and its partner Microsoft. U.S. District Judge Amit Mehta has scheduled a trial on the remaining proposals for April.

The case is one among several high-profile antitrust actions facing major tech companies, with Apple, Meta Platforms, and Amazon also confronting allegations of maintaining illegal monopolies in their respective markets. Since his reelection, Google has warned that the DOJ’s approach could undermine its competitiveness in AI and jeopardize America’s global economic and technological leadership.

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