The decision, delivered Tuesday by Judge Amit Mehta, allows Google to retain control of its Chrome browser and Android mobile operating system, while continuing its lucrative practice of making payments to partners such as Apple to feature Google Search as the default option. However, the court barred certain exclusive contracts with device makers and browser developers, marking a partial win for regulators.
Apple’s shares also benefited, climbing 3.2%, as the ruling preserved billions of dollars in annual payments it receives from Google. Analysts noted that the outcome clears a path for deeper collaboration between the two companies, including potential integration of Alphabet’s Gemini AI into future iPhones. Bloomberg reported last month that Apple was in early talks to use Gemini to power an upgraded Siri voice assistant.
“This outcome removes a significant legal overhang and signals that the court is willing to pursue pragmatic remedies rather than scorched-earth tactics,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Alphabet stock hit an intraday record high of $230.86 and has risen about 11.7% year-to-date, outpacing the S&P 500 but still trailing Big Tech peers such as Meta and Microsoft. Despite the surge, Alphabet shares remain relatively cheaper, trading at 20.3 times forward earnings — a discount to other members of the so-called “Magnificent Seven” and the broader market.
The ruling stems from a 2020 lawsuit filed by the U.S. Justice Department, which accused Google of illegally maintaining its dominance in online search through exclusionary agreements. Judge Mehta had previously found Google in violation of antitrust laws but stopped short of ordering a breakup, citing the emergence of AI-powered competitors like ChatGPT as evidence of a shifting market landscape.
Under the latest remedies, Google must share portions of its search index and user interaction data with rivals — a step aimed at helping AI startups and competitors improve their own search and chatbot offerings. Still, analysts caution that the scale and data advantage Google enjoys will remain a high barrier.
“The order requires data sharing that is limited in scope, in a way we conclude may only marginally boost competition by generative AI services,” said Nick Rodelli, legal analyst at CFRA Research’s Washington Analysis.
For Alphabet, the ruling preserves its most profitable revenue streams while imposing relatively modest restrictions, reinforcing investor confidence in the company’s ability to maintain dominance in search even as the competitive landscape evolves.