The stock price of Alphabet surged 8% after it was ruled in an antitrust case that Google can keep Chrome and Android.
Alphabet stock climbed 8% following a US federal court judgement in a major antitrust case involving the big tech firm. The share surge on Tuesday evening came after news broke of the final decision in a case that had threatened the company’s core business model.
Rejecting previous demands from the US Department of Justice (DOJ), Judge Amit Mehta ruled that Google’s parent company can retain its Chrome browser and Android operating system. Investors responded positively to the ruling as the court backed away from aggressive penalties against the firm.
The DOJ first brought the case in September 2023, claiming Google had illegally monopolised search and advertising. Then in August 2024, the court confirmed Google violated antitrust law, with the DOJ seeking for sweeping structural changes at the tech giant.
What was Judge Mehta’s Alphabet ruling?
Judge Mehta said that Google violated antitrust law but rejected more extreme penalties, which would have included divesting Chrome and Android. He ruled the company must share certain search index and user interaction data with rivals. However, its advertising data does remain protected.
Mehta emphasised that remedies should focus on promoting fair competition rather than punishing success and profitability. The ruling aims to open the market to rivals while allowing Google to maintain its core services and operations.
Lastly, the judge highlighted that emerging AI search tools already create competition, reducing the need for radical structural changes. Both parties are set to finalise the judgment by 10 September.
How has Google responded to the court’s decision?
Google said it welcomed recognition that breakups were unnecessary but raised privacy concerns about forced data-sharing. The firm stated it would appeal, meaning the legal battle could continue for several years to come.
A company statement on the Google website read, “Now 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, and we’re reviewing the decision closely. The Court did recognize that divesting Chrome and Android would have gone beyond the case’s focus on search distribution, and would have harmed consumers and our partners.”
Why the Alphabet ruling is good news for Apple
Despite Apple not being a defendant in the case, its close relationship with Google became a central part of the remedies discussion. In testimony earlier this year, Eddy Cue, Apple’s services chief, stated how Google provides the “best search engine” for customers.
During this case, the court said that Google can continue payments to partners like Apple. Regarding such deals, the company cannot demand exclusivity. If the court had ruled against the search payments, it could have seriously affected how its Safari browser operates.
Apple’s shares rose by 3% in extended trading hours following the ruling. The company earns billions in income from Google payments, which ensures Google is the default search engine on Apple devices.
While the ruling appears to be a victory for Google and Apple for now, future legal battles are ahead. Google avoided drastic penalties this time around, but the broader antitrust fight against regulators remains unresolved.
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