Google Avoids Breakup, Alphabet Stock Rallies

Google achieved a significant victory as it will not have to sell Chrome, but will share information with competitors, according to a US federal judge's ruling, following a multi-year legal battle over its dominance in online search.

The US Department of Justice (DOJ) had proposed breaking up Google, including the disposal of Chrome, in an antitrust case that began in September 2023.

Judge Amit Mehta ruled against the stricter consequences proposed by the DOJ. Google can keep Chrome but will be prohibited from having exclusive contracts and will have to share search data with its competitors.

Google stated that it considers the decision “a victory,” which was also contributed to by the rise of artificial intelligence (AI). The company has denied any wrongdoing since the charges were filed in 2020, arguing that its dominance is due to its superior search engine.

Following the decision, shares of parent company Alphabet rose 6%. Daniel Ives of Wedbush Securities raised the target price for Alphabet stock to $245.