The verdict means that the tech giant gets to keep the web browser. A partial victory for the monopoly-accused company, which is however prohibited from entering into agreements that make their services exclusive.
Google currently pays Apple billions of dollars every year to be the selected search engine in iPhone.
To promote competition, Google is also forced to share search data with competitors.
Judge Amit Mehta ruled a year ago that Google, in contravention of the law, has monopolized the market for searches on the internet.
It was after this that the Department of Justice turned to Mehta and asked the judge to issue a ruling with the implication that Chrome must be sold.
Mehta's ruling goes against the government's most far-reaching proposals, including the divestment of Chrome, whose data collection helps Google's advertising business deliver targeted ads.
The judge also rules that Google does not need to decouple the mobile phone operating system, Android, from the company's other products.
AI company Perplexity made a bid of $34.5 billion (over 326 billion kronor) for Chrome in early August, according to CNBC.
The legal process against Google began already during President Donald Trump's first term and continued when Joe Biden was elected in 2020.
Alphabet's stock rises in after-hours trading.
