Google parent's market value soars $230B after favorable antitrust ruling
What's the story
Google's parent company, Alphabet, has gained over $230 billion (around ₹19.2 lakh crore) in market value in just four days. The surge came after a favorable ruling in its antitrust case on September 2. US District Judge Amit Mehta rejected the Department of Justice's request for Google to break up key assets like the Chrome browser and Android operating system.
Takeaways
Ruling ensures Google remains default search engine on iPhones
Judge Mehta had previously found Google guilty of maintaining an illegal monopoly in internet search. However, he recently ruled that the plaintiffs "overreached" in seeking divestiture of Chrome and Android. The decision not only boosted Google's shares but also benefited Apple, as it allows their multi-billion dollar agreement to continue. The ruling ensures Google remains the default search engine on iPhones, removing uncertainty around this lucrative partnership.
Future collaborations
Potential for expanded Google-Apple partnership in AI
Wedbush Securities analysts have said the ruling could lead to an expanded partnership between Google and Apple, including potential AI collaborations. Google's Gemini models are likely to be integrated into Apple's future projects. In a blog post, Google expressed concerns about how the court's requirements might affect users and privacy but welcomed its recognition of breakup risks.
DOJ statement
Department of Justice welcomes ruling, case nearing conclusion
The Department of Justice welcomed the ruling, saying it recognizes the need to prevent Google from leveraging its search dominance to gain an unfair advantage in generative AI. The case, which started in September 2023, is one of the largest antitrust trials in modern US history. Judge Mehta has ordered both sides to meet by September 10 for a final judgment, bringing proceedings closer to conclusion.