Alphabet HQ in California as shares rise after the US court ruling
US court ruling boosts Alphabet shares: Alphabet shares court ruling
In September 2025, US federal judge Amit Mehta delivered his landmark verdict in a crucial antitrust case against Google’s parent company Alphabet. And this decision not only determined the future direction of Alphabet but also sparked a new debate across the tech industry. Along with this, Google was allowed to retain its Chrome browser and Android operating system, as well as some restrictions were imposed. Also, after this decision, Alphabet’s shares saw a jump of 6% to 8%, increasing the company’s market value by about 200 billion dollars overnight. This decision has come as a big relief for Google. But antitrust cases were going on against it since 2020. In this article, we will present a detailed analysis of various aspects of this decision. And its immediate impact and long-term consequences.
Decision on Chrome and Android
The court allowed Google to retain control over the Chrome browser and Android operating system, which are important parts of the company’s business model. Also, Judge Mehta said that Google will not be required to separate from Chrome and nor will the court include a contingent divestiture of the Android operating system in the final judgment. But this decision rejects the US Justice Department’s demand to break up Google’s core business. Also, the judge admitted that Google has violated antitrust laws. But at the same time, he also said that the breakup of the company can harm consumers and partners.
Ban on exclusive contracts
The court has stopped Google from making exclusive contracts with device manufacturers and browser developers. This means that Google can no longer put a condition on any company that it will only use Google’s products. Google can make payments to its partners to keep its search engine as the default option. Also, on this particular point, the court said that it will not bar Google from making payments or offering other consideration to distribution partners for preloading or placement of Google Search, Chrome, or its GenAI products.
Mandatory sharing of search data Alphabet shares court ruling
One of the most important aspects of the decision is that Google will now have to share some search data with competitors. Also, Judge Mehta has ordered Google to share some search index data and user interaction data with competitors like DuckDuckGo Bing. But sharing ads data will not be mandatory. Its purpose is to increase competition in the search engine market that has frozen for the last decade. Additionally, they have allowed permission to continue the agreement with Apple, the default search engine agreement between Google and Apple. But under which Google pays 20-28 billion dollars to Apple every year. And the court believed that a complete ban on this agreement can harm downstream partners, related markets and consumers. So, Apple’s shares also saw a surge of 2.6% to 4% due to this decision.
Surge in Alphabet’s shares
After the court’s decision, Alphabet’s shares saw a significant surge. And in pre-market trading, the shares rose by 6%, while in after-hours trading this surge reached 8%. This surge increased the company’s market value by about 200 billion dollars overnight, but the main reason for this surge was the relief of investors that Google has been saved from the worst-case scenario – business breakup. Also, the positive impact on Apple’s shares was that Apple’s shares also recorded a rise of 2.6% to 4.3% because the company’s profitable partnership with Google will be able to continue. And a significant portion (about 20 billion dollars) of the yearly revenue Apple gets from Google comes from this partnership. But the company uses it for investment in research and development.
Broader impact on tech sector
The decision has positively impacted investor sentiment across the tech sector, analysts believe. But the decision sets a precedent for other tech giants like Meta, Amazon and Apple, which are facing similar antitrust challenges. Analysts at MoffettNathanson called the decision a home run for the status quo. Also, the stock market reaction after the court’s decision, which is the main reason for the surge in company shares
Alphabet (Google) 6-8% Chrome/Android defense, relief from breakup Apple 2.6-4.3% Google search deal continues Other Tech Stocks Mixed Regulatory concerns ease
History and background of the antitrust case
In 2020, the US Justice Department and attorneys general from 52 state jurisdictions filed an antitrust case against Google, accusing it of illegally maintaining a monopoly in the search market through exclusionary agreements with device manufacturers and browser developers, as well as an interim award of 2024, which they will issue in August 2024. District Court for the District of Columbia ruled that Google violated Section 2 of the Sherman Act and created a monopoly in search-related advertising. But Judge Mehta did not order a breakup of the company at that time, instead setting a hearing on remedies in May 2025.
Continuation of Apple partnership on Alphabet shares court ruling
The continuation of the Google-Apple partnership is of strategic importance for both companies. Apple will continue to receive a revenue stream of about $20 billion, while Google will continue to have access to a massive user base by remaining the default search engine on the iPhone. Analysts also believe the partnership could become even more important in the AI era, where Google’s Gemini AI could be integrated into future iPhones and impact the competition landscape.
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