Judge Allows Google to Keep Chrome and Android Intact Boosting Alphabet Shares by 6%

A U.S. federal judge has ruled that Google can retain its Chrome browser and will not be required to divest its Android operating system as part of an antitrust case challenging Google's dominance in online search. The judge's decision finds that while Google must share search data with competitors, it is not obligated to take the most severe penalties such as selling its Chrome browser.

This decision arises from a lawsuit filed by the U.S. Department of Justice in 2020, which accused Google of maintaining unlawful monopolistic practices in the general search and search advertising markets. The court determined that Google's contracts and agreements that set its search engine as the default option did not violate antitrust laws to the extent warranting a forced divestment of its assets.

Under the terms of the ruling, Google is permitted to continue compensating distribution partners for preloading Google services, including the Chrome browser and search engine, on devices. However, it must refrain from entering exclusive contracts that prevent competitors from accessing the search market. Such a restriction aims to foster competition and consumer choice in the search engine landscape.

Following the announcement of the ruling, Google's parent company Alphabet saw a substantial increase in its stock value, with shares rising by more than 6% in after-hours trading. This reflects investor confidence in Google's ability to sustain its business model without the need for significant restructuring.

Google has expressed its intention to appeal the decision, which is expected to delay any enforcement of potential remedies. The broader antitrust case remains part of a wider effort by U.S. authorities to regulate and curtail the influence of major technology companies, an initiative that has been ongoing since the first term of former President Donald Trump.