WASHINGTON, DC – Google’s parent company Alphabet saw its stock jump 8% in after-hours trading Tuesday after a federal judge ruled the tech giant won’t be forced to sell its Chrome browser or Android operating system following last year’s landmark antitrust conviction.
U.S. District Judge Amit Mehta delivered what many investors viewed as a surprisingly lenient decision, allowing Google to keep its most valuable assets while imposing restrictions on exclusive distribution deals that helped cement its search monopoly over the past decade.
The ruling caps nearly a year of uncertainty since Mehta first determined that Google illegally monopolized the internet search market, violating federal antitrust laws. The Justice Department had pushed for the most severe remedies possible, including forcing the company to divest Chrome and potentially Android.
“Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment,” Mehta wrote in Tuesday’s decision. He criticized prosecutors for overreaching in their demands, saying the proposed breakup went beyond what was necessary to address the search monopoly.
Instead, the judge focused his remedies on Google’s exclusive distribution agreements, particularly its lucrative deal with Apple that makes Google the default search engine on iPhones. The tech companies have maintained this arrangement for years, with Google paying Apple billions annually for the privileged position.
Apple’s stock also rose 4% in extended trading following the announcement, reflecting investor relief that the profitable partnership can continue with some modifications. The deal has been a significant revenue source for Apple while providing Google access to millions of iPhone users.
Under the new restrictions, Google can still make payments to device manufacturers and software companies to feature its search engine, but it cannot establish exclusive contracts that block competitors from accessing the same distribution channels. The change aims to level the playing field for rival search engines like Microsoft’s Bing or DuckDuckGo.
The court also ordered Google to share certain search data with competitors, though not the detailed advertising information that drives much of the company’s revenue. This data-sharing requirement covers search index information and user interaction patterns that could help rivals improve their own services.
“The court’s ruling today recognizes the need for remedies that will pry open the market for general search services, which has been frozen in place for over a decade,” the Justice Department said in a statement. Officials emphasized that the decision also extends protections to emerging artificial intelligence technologies.
Google responded with cautious optimism while expressing concerns about user privacy implications. The company noted in a blog post that it’s reviewing the decision carefully and worrying about how data-sharing requirements might affect user information.
The antitrust case began in September 2023 and marked the most significant challenge to a major tech company’s market dominance in decades. Prosecutors argued that Google’s exclusive deals with device makers and browser companies created insurmountable barriers for competitors.
The judge has ordered both sides to finalize the remedies by September 10, bringing formal closure to a case that has hung over Google’s business operations for more than a year. The relatively modest penalties suggest other tech giants facing similar scrutiny may avoid more dramatic corporate restructuring.
