Alphabet shares soar as US court spares Google Chrome and Android in landmark antitrust ruling

Shares in Alphabet surged to record highs after a pivotal US court decision allowed Google to retain ownership of its Chrome browser and Android operating system. Investors rallied behind the verdict, which dismissed attempts by the US Department of Justice to force divestiture of these core assets, lifting Alphabet’s stock by 9 per cent to close at $231.10 in New York.

US District Judge Amit Mehta ruled that, although Google held an unlawful monopoly in online search and advertising, the government’s demand for a forced break-up went too far. While Chrome and Android will remain under Alphabet’s control, the company faces fresh restrictions designed to foster competition in the sector.

Mehta’s lengthy 226-page judgment requires Google to share data with competitors and prohibits exclusive agreements that previously prevented device manufacturers from preinstalling rival products. The court specifically highlighted the rapid rise of generative artificial intelligence as a transformative force now challenging Google’s dominance in online search, noting that major technology firms are better placed than ever to compete in this space.

Alphabet may continue making payments to partners, such as Apple, to ensure the Google search engine remains the default option on popular devices, with Apple’s share price also responding positively, rising 3.8 per cent to $238.47. The ruling has implications not just for traditional search rivals, but also for emerging AI-based platforms, extending the new requirements to Google’s generative AI offerings, including its Gemini chatbot.

Reacting to the decision, Google acknowledged its concerns about the potential impact on user experience and privacy, signalling a careful review of the court’s orders. The US Department of Justice, while acknowledging the court’s recognition of lasting competition problems in search, expressed doubt over whether the remedies went far enough to restore fair competition.

The judgment has been interpreted by market analysts as a balanced approach, addressing anticompetitive practices without undermining innovation by dismantling key industry infrastructure. As AI’s influence continues to reshape the world of online search, regulators and industry leaders alike are now watching how these remedies play out in practice.