Google-parent Alphabet surged 6% in premarket trading on Wednesday after a U.S. federal judge spared the company from a forced breakup in an antitrust case, marking a pivotal moment for the tech giant whose dominance in search and mobile ecosystems has long drawn scrutiny.
The ruling by Judge Amit Mehta allows Google to retain control of its Chrome browser and Android mobile operating system, while barring certain exclusive contracts with device makers and browser developers. Google can continue making payments to partners such as Apple to feature its search engine, a practice central to its dominance in online search.
Shares of Apple rose 2.6% premarket.
The outcome is "a home run for the status quo," MoffettNathanson analysts said, adding that "being found guilty of monopolistic behavior yet facing such a benign remedy is particularly favorable" for the tech firm.
The ruling, they said, preserves Alphabet's ability to deepen its partnership with Apple and potentially integrate its Gemini AI into future iPhones.
The decision lifts a key regulatory overhang that had weighed on Alphabet's valuation, with analysts noting that the company had traded at a discount to peers amid fears of a forced divestiture.
Alphabet shares are up nearly 11.7% year-to-date, outperforming Amazon but trailing Meta and Microsoft.
The US government sued Google in 2020, alleging it illegally maintained a monopoly in search through exclusionary deals with device makers and browser developers.
Judge Mehta ruled last year that Google violated antitrust laws but declined to order a breakup, citing the rise of AI tools like ChatGPT as emerging competition.
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