Big Relief for Google in Antitrust Case; Alphabet Avoids Breakup Risk

Staff Reporter | PNN:
A U.S. federal judge’s decision not to force the breakup of Google’s parent company, Alphabet, has had a positive impact on the stock market. On Wednesday (September 3), in pre-market trading, shares of the tech giant rose nearly 6 percent.

Judge Amit Mehta ruled that Google can maintain full control over its Chrome browser and Android operating system. However, the company must refrain from making exclusive agreements with device manufacturers and browser developers. At the same time, other partners, including Apple, will continue to be allowed to pay for opportunities to display their search engines.

Analysts say the ruling is a “status quo victory” for Google. Although the company was found liable for antitrust violations, the absence of a forced breakup is a major benefit. This strengthens Google’s partnership with Apple and increases the likelihood that Google’s Gemini AI could be integrated into future iPhones.

Analysts also note that this decision eases pressure on Alphabet’s share price, which had been trading at a lower level than competitors due to long-standing fears of a forced breakup.

So far this year, Alphabet’s stock has risen nearly 11.7 percent—better than Amazon but slightly behind Meta and Microsoft.

It is worth noting that in 2020, the U.S. government filed a lawsuit against Google, alleging that the company maintained illegal dominance in the search market through exclusive agreements with device manufacturers and browser companies. Last year, a judge found Google guilty of violating competition laws but did not order a breakup, citing the rise of AI tools like ChatGPT as a factor for future competition.