[sillysaurus3]

This implies that a monopoly is bad.

The government realizes how powerful Google's monopoly is. It's a monopoly on information. And that implies a monopoly on the rest of the world – at least, the part of it that uses Google.

Any litigation would be spearheaded by the government. As long as Google plays ball with the backroom deals, they have nothing to worry about. If the NSA couldn't tap into the data behind their backs, they'll do it clandestinely but with Google's knowledge.

This isn't as far fetched as it sounds. You're right that Google faces a monopoly breakup. But that gives the government all kinds of leverage into their treasure trove of human interaction.