So Google is a monopoly and removing funding to Firefox will help them not to be a monopoly? That does not sound right. Rather the opposite.

Nothing has been decided or done yet. Most likely they will just be forced to not abuse their position, for example make ads for it on www.google.com, don't bundle Chrome with Android and such things.

I believe there will always be an alternative to Chrome available as the Open Source community will find a way together.