Alphabet’s Google does not have to sell its Chrome web browser but must share some of its search and other data with competitors, a federal judge decided in the Justice Department’s landmark case against the search giant.

Judge Amit Mehta ruled last year that Google illegally monopolized online search and advertising by paying companies like Apple and Samsung billions of dollars a year to install Google as the default search engine on smartphones and web browsers.

The decision could have fundamentally reshaped how Google does business, and the Justice Department proposed sweeping changes including selling off Chrome or the Android operating system.

But Mehta stated in his Sept. 2 ruling that “Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment."

“Plaintiffs overreached in seeking forced divesture of these key assets, which Google did not use to effect any illegal restraints,” the ruling stated.

Mehta instead put restrictions on – but did not ban – the payments Google makes to get prominent placement in web browsers on smartphones. Google spends billions each year to be the default search engine on web browsers and smartphones. It can continue to make the payments but cannot enter into exclusive contracts.

“Courts must approach the task of crafting remedies with a healthy dose of humility,” Judge Mehta wrote. “This court has done so.”

Justice Department, Google react to ruling

The Justice Department said the ruling "recognizes the need for remedies that will pry open the market for general search services, which has been frozen in place for over a decade" especially with the rise of artificial intelligence.

The closely watched case is the first in a series of antitrust cases brought by the Justice Department and the Federal Trade Commission to rein in the massive power of tech giants during the Biden and Trump administrations. The yearslong case was filed in President Donald Trump's first administration.

“This decision marks an important step forward in the Department of Justice’s ongoing fight to protect American consumers,” Attorney General Pamela Bondi said in a statement.

Google said it was reviewing the decision closely.

"The Court has imposed limits on how we distribute Google services, and will require us to share Search data with rivals. We have concerns about how these requirements will impact our users and their privacy," Google said in a statement.

Google shares pop

Alphabet shares popped 7% in after hours trading on the news. Apple shares rose 3%. Wedbush Securities analyst Dan Ives said it was a "home-run" ruling for both.

"Google and Apple just got a massive win from the courts ruling that the ongoing $20 billion search deal between the two stalwarts will remain and not be barred in its current form," Ives wrote in a research note.

(This story has been updated to add new information.)

This article originally appeared on USA TODAY: Google can keep Chrome and Android, judge rules in landmark case

Reporting by Jessica Guynn, USA TODAY / USA TODAY

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