Google's after-hours US shares rise 7% after favorable ruling in online search monopoly case.

Google's after-hours US shares rise 7% after favorable ruling in online search monopoly case.

Alphabet Inc.'s (GOOG) shares surged by 7% in extended trading on Friday following a favorable ruling in its ongoing antitrust case. The U.S. District Court ruled that Google will not be required to sell off Chrome or divest its Android operating system, while also mandating that the company share information with competitors to remedy the online search monopoly [1].

The ruling, which comes after a lengthy legal battle, has significant implications for Google's business model and its competitors. The judge's decision not to force Google to sell Chrome or Android is seen as a victory for the tech giant, which has maintained that its dominance in search is due to the quality of its services rather than forced defaults.

However, the court's ruling also includes a mandate for Google to share information with competitors. This could potentially help rivals like Microsoft's Bing or DuckDuckGo gain traction in the market, although Google has argued that user behavior is driven by the quality of its search engine rather than forced defaults.

The ruling also addresses the $26 billion in annual payments that Google makes to Apple and other device makers to maintain its default search engine status. While the judge's decision does not require Google to cease these payments, it does leave open the possibility of shorter contracts with multiple providers. This could potentially free up significant resources for Google to invest in its AI platform, Gemini, which could strengthen its position in the rapidly evolving AI landscape [2].

Wall Street analysts have expressed optimism about the potential benefits of redirecting the $26 billion in payments into AI and cloud services. While the immediate impact on Google's traffic may be minimal, the long-term benefits of investing in AI could be substantial. Some analysts have suggested that Google could emerge as a stronger competitor in the AI space if it successfully redirects these resources.

The ruling also highlights the complex nature of regulating a "natural monopoly" like Google. Economists have argued that Google's dominance is due to its scale and the quality of its services, making it similar to a regulated utility. As such, the focus should be on how to regulate the company rather than breaking it up.

For investors, the ruling presents a mixed bag of opportunities and risks. On one hand, the potential loss of $26 billion in annual payments could be a significant headwind for Google's financials. On the other hand, the ability to redirect these resources into AI and cloud services could position Google as a leader in the next generation of technology.

In conclusion, the ruling in Google's antitrust case is a significant development that will shape the future of the tech giant and its competitors. While the immediate impact on Google's shares may be positive, the long-term implications will depend on how the company navigates the complex regulatory environment and invests in its AI platform.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UP1H5:0-alphabet-up-after-us-judge-rules-google-will-not-have-to-sell-chrome-in-search-monopoly-case/
[2] https://www.stanventures.com/news/googles-26b-search-deals-at-risk-antitrust-could-boost-its-ai-future-4166/