A Court Spares Google’s Chrome, Preserving Its Digital Empire for Now

Alphabet Inc. saw a significant 8% surge in its stock price on Tuesday following a pivotal U.S. court ruling that allowed the company to retain its Chrome browser and continue revenue-sharing agreements with partners, including Apple. U.S. District Judge Amit Mehta rejected the U.S. Department of Justice’s demand for Google to divest its Chrome browser and instead outlined remedies for its antitrust violations, which had been under scrutiny since 2024. The ruling came as a relief to investors who had feared a worst-case scenario in which Google would have been forced to dismantle key parts of its business. Mehta’s decision permitted Google to continue preloading its Chrome browser and preloaded Google Search on devices, but prohibited the company from entering exclusive contracts for its search, Chrome, Google Assistant, or Gemini products [1].

The ruling marked a key development in the landmark antitrust case against Google, which centered on its dominance in the general search market and the alleged barriers to entry it created for competitors. The Department of Justice had argued that Google’s default search deals, including those with Apple, were anticompetitive. However, Mehta found that banning such payments entirely could have “crippling” effects on distribution partners and consumers. The decision allowed Google to continue making payments for preloading its products, although it imposed restrictions on exclusive contracts. This means that while Google can still pay to have its search engine or apps preloaded on devices, it cannot condition those payments on accepting other Google services or apps [4].

Apple’s shares also rose over 3% in after-hours trading following the ruling. The company, though not a direct party to the lawsuit, had entered into an exclusive agreement with Google to have it as the default search engine on Safari browsers. Mehta’s decision effectively barred Google from maintaining such exclusive contracts, which could influence future negotiations between the two tech giants. The remedies also required Google to allow its search data to be shared with rivals, a potential shift in its long-standing data strategy. Google acknowledged the ruling in a blog post, expressing concerns about its impact on user privacy and stating it is reviewing the decision closely [4].

Analysts have noted that while the ruling imposes restrictions on Google’s distribution strategies, it stops short of dismantling its core business operations. A Baird analyst previously estimated that Google Chrome alone is worth approximately $100 billion, underscoring the financial significance of allowing the browser to remain intact [1]. However, the restrictions on exclusive contracts may lead to shifts in how Google partners with device manufacturers and service providers. Additionally, the ruling opens the door for other search engines and digital services to gain more visibility on devices and platforms where Google currently holds a dominant position.

The case is far from over. Google has already indicated it will appeal the ruling, and analysts estimate the appeals process could take up to two years. The U.S. Supreme Court could also step in after the appeals are exhausted. Mehta’s decision provides a framework for future negotiations and regulatory scrutiny but does not mark the final chapter in the government’s ongoing antitrust efforts against big tech. The decision also highlights the delicate balance between enforcing antitrust laws and preserving market stability, particularly when dealing with companies that hold such significant influence over digital ecosystems [1].

The antitrust case has broader implications for the tech industry, signaling to companies that maintaining dominant market positions through exclusive arrangements could face legal consequences. The ruling also demonstrates the judiciary’s role in shaping the competitive landscape of the digital economy, with potential ripple effects on innovation, consumer choice, and the dynamics of digital advertising. As the case continues to unfold, investors, regulators, and tech partners will be closely watching how the market responds to the evolving legal landscape.

Source: [1] Alphabet’s stock is rising after Google antitrust ruling avoids the worst-case scenario (https://www.marketwatch.com/story/alphabets-stock-is-rising-after-google-antitrust-ruling-avoids-the-worst-case-scenario-39d1c284) [4] Apple shares rise after decision in Google antitrust case (https://www.cnbc.com/2025/09/02/apple-shares-rise-after-decision-in-google-antitrust-case-.html)