Alphabet’s shares closed over 9% higher on Wednesday, adding about $210 billion to the company’s market value, after a U.S. judge ruled against breaking up the Google parent company. The decision by Judge Amit Mehta allows Google to maintain control of its Chrome browser and Android mobile operating system, while also continuing to make significant payments to partners like Apple to feature its search engine.
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The ruling has been seen as a major win for Alphabet, removing a significant legal cloud that had been hanging over the company since the U.S. government filed an antitrust lawsuit in 2020. The lawsuit alleged that Google illegally maintained a monopoly in the search market through exclusionary deals with device makers and browser developers.
Analysts believe the ruling preserves Alphabet’s ability to deepen its partnership with Apple, a key revenue driver. This includes a potential deal to integrate Google’s Gemini AI into future iPhones, a topic that has been the subject of recent reports. Apple’s shares also benefited from the news, closing up 3.8%.
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Judge Mehta’s decision acknowledged the rise of new AI tools like ChatGPT as emerging competition, which influenced his ruling against a full breakup. While the judge required Google to share certain search data with competitors, analysts say this will likely only provide a marginal boost to rival AI services, as Google’s massive scale and data lead remain formidable.
