Alphabet (NASDAQ:GOOGL) stock rose over 5% in after-hours trading Tuesday after a federal judge ruled that Google will not be required to sell its popular Chrome web browser as part of remedies in the Justice Department’s landmark antitrust case.
Judge Amit Mehta’s decision allows Google to avoid one of the most severe potential penalties following the court’s earlier finding that the company maintained an illegal monopoly in the search market. While Google will be barred from entering into exclusive contracts for internet search, the ruling spares the tech giant from divesting key assets.
The decision also determined that Google will not have to sell off its Android operating system, representing another significant victory for the company. Additionally, the judge ruled that Google will not be required to cease payments to Apple and other companies for preloading Google products.
The judgment, which will last for six years, does require Google to share certain information with competitors as a remedy for its online search monopoly. This less severe outcome than what government prosecutors had sought appears to have relieved investors.
Google said in a blog post that it has "concerns about how these requirements will impact our users and their privacy," and that it was "reviewing the decision closely."
"The Court did recognize that divesting Chrome and Android would have gone beyond the case’s focus on search distribution, and would have harmed consumers and our partners"
Tuesday’s ruling also positively affected Apple (NASDAQ:AAPL), whose shares rose 3.6%, as the ruling allows the continuation of a lucrative arrangement where Google pays Apple to be the default search engine on iOS devices.
Source :
https://www.investing.com/news/stock-market-news/alphabet-stock-rises-after-judge-rules-google-can-keep-chrome-browser-4220236
