Alphabet surges 6% after favorable Google antitrust ruling

September 03, 2025 (MLN): Alphabet shares jumped 6% in premarket trading after a U.S. court ruling in Google’s antitrust case was seen as broadly favorable to the tech giant.

The case, initiated by the U.S. Department of Justice (DOJ) in September 2023, had proposed a potential break-up of Google, including the divestment of its Chrome browser.

While Google was previously found to hold an illegal monopoly in internet search, U.S. District Judge Amit Mehta ruled against the most severe remedies suggested by the DOJ.

Under the ruling, Google will not be required to divest Chrome.

The company can also continue making payments to firms for preloading its products but is barred from exclusive contracts that condition payments or licensing.

This allows Google to maintain its multibillion-dollar agreement with Apple to remain the default search engine on iPhones.

Apple shares also rose in premarket trading following the decision, as CNBC reported.

“This is a monster win for Cupertino and for Google it’s a home run ruling that removes a huge overhang on the stock,” Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Tuesday.

Despite rising competition in its core search business from challengers like Perplexity and OpenAI, Google has sustained growth in its advertising revenues.

The company is also banking on Gemini, its suite of AI models and chatbot, to solidify its role in artificial intelligence.

“Following today’s announcement, we are increasingly constructive in the longer-term durability of Google’s Search business and are raising our estimates accordingly,” Ives added, raising his price target for Alphabet stock to $245.

The court’s ruling also means Google will retain ownership of its Android operating system, which powers about 70% of smartphones worldwide.

Android is viewed as a strategic asset for expanding Gemini’s reach by leveraging the platform’s massive user base.

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