Alphabet, Google’s parent company, saw its market value rise by more than Rs. 19.2 lakh crore ($230 billion) in just four days after a favourable outcome in its U.S. antitrust case.
On September 2, U.S. District Judge Amit Mehta rejected the Department of Justice’s demand for Google to divest key assets such as the Chrome browser and Android operating system. The court said the plaintiffs “overreached” in seeking forced divestiture, stating that these assets were not used to impose illegal restraints.
The ruling boosted Alphabet’s stock by 8% in extended trading on Tuesday and over 10% during the week. The eight trillion-dollar U.S. tech companies together added Rs. 35 lakh crore ($420 billion) in market capitalisation, taking their combined value to $21 trillion.
Apple also gained from the outcome, with its stock rising 3.2%. The ruling ensures continuation of Apple and Google’s multi-billion-dollar deal that makes Google the default search engine on iPhones. Analysts at Wedbush Securities said the judgment removed a major concern for Google and eased market worries for Apple, adding that it could also set the stage for expanded collaboration in artificial intelligence using Google’s Gemini models.
Google, in a blog post, said it was concerned about how the court’s requirements may affect users and privacy but welcomed the court’s recognition of the risks of a breakup. The Department of Justice said the decision acknowledges the need to prevent Google from using its dominance in search to gain unfair advantage in generative AI.
The antitrust trial, which began in September 2023, will now move towards final closure, with both parties directed to meet by September 10 for the concluding judgment.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
