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The judge can reject a plea deal because they have some discretion over what is a "fair" sentence. He can't decide if someone should be charged at all.Let's remember in War Machine's trial the judge rejected a plea agreement that the DA recommended for Mr. Machine. And I did not hear any outcries over that. I know nothing about criminal law so I have no idea how rare this is. But it obviously does happen.
You get a plea deal by pleading guilty to the crime for which you are charged and then agreeing to a sentence. Since sentencing is the judge's job, he can decide if the agreed upon sentence is acceptable given the guilty plea. But, as I understand this story, we don't have a guilty plea, we have a DA who is deciding not to press charges at all and the judge is basically saying "no, you have to charge them with a crime" which I've never heard of since the power to decide what charges to bring is entirely up to the DA.