Alphabet rallies after judge spares Google from forced breakup in landmark antitrust case
Shares surged as much as 8% after a federal ruling that preserves Google’s business arrangements and a major payment stream to Apple, drawing both investor relief and criticism from antitrust advocates.
A federal judge on Wednesday declined to order a breakup of Google, sending Alphabet Inc. shares sharply higher and triggering a broader rally in technology stocks.
Alphabet’s stock rose as much as 8% in early trading after the ruling, adding tens of billions of dollars in market value within hours; the shares were about 6% higher later in the session. The move reflected investor relief that the court spared Google from the most drastic structural remedy sought in the government’s landmark antitrust case.
U.S. District Judge Amit Mehta declined to impose a forced breakup of Google, according to court filings and reporting on the ruling. Market observers said the decision removes a major regulatory overhang for Alphabet and for other companies that do business with Google.
The ruling also preserved a lucrative stream of payments from Google that helps keep its search engine the default on Apple’s iPhones. Apple’s stock gained nearly 4% on the news, as analysts noted the ruling maintains what some have estimated to be roughly $20 billion in annual payments to secure default status on Apple devices.
Investors and analysts praised the decision. Wedbush Securities technology analyst Daniel Ives described the result as a “monster win” for both Apple and Google and raised his price target on Alphabet to $245, saying the ruling removes a “huge overhang” on the stock.
Critics of the ruling reacted sharply. Barry Lynn, executive director of the anti-monopoly think tank Open Markets Institute, said the decision “lets Google and every other monopolist know that even the most egregious violation of law will be met with a slap on the wrist.” His comments reflected broader concern among some advocates who argued that structural remedies are necessary to curb dominant platforms’ market power.
The case has been framed as a test of how far courts and regulators will go to reshape large technology platforms. Government plaintiffs had argued that Google’s agreements and practices harmed competition in digital advertising and search by entrenching its market position. The judge’s refusal to order a breakup leaves intact many of Google’s core commercial relationships and licensing arrangements.
Legal experts said the ruling does not end the antitrust battle. Appeals or additional legal challenges could follow, and courts often shape remedies over extended proceedings. For now, however, markets interpreted Wednesday’s ruling as a decisive short-term victory for Alphabet and its partners.
The market reaction reflected both relieved investors and renewed scrutiny from antitrust advocates. While shares climbed and analysts pared some downside risk, critics said the ruling underscored the limits of current enforcement if structural remedies are rarely imposed. Policymakers and competitors will continue to debate how best to address market concentration in technology and other sectors.
Judge Mehta’s decision is likely to be studied closely by companies, investors and regulators as the legal and political response to the dominance of major tech platforms continues to evolve.
