TLDR
- Judge Amit Mehta issued limited remedies allowing Google to keep Chrome browser and continue Apple payments
- GOOGL stock surged 5.9% in premarket trading as investors celebrated lighter-than-expected penalties
- Google must end exclusive distribution contracts and share search data with AI competitors
- Court recognized AI tools like ChatGPT now pose real threats to Google’s search dominance
- Apple stock rose 2.9% as $20 billion annual payments from Google remain intact
Alphabet stock rocketed higher Tuesday after a federal judge delivered what investors saw as a gift-wrapped verdict. The long-awaited ruling in Google’s monopoly case spared the tech giant from the harshest penalties that could have torn apart its business.
BREAKING: Alphabet stock, $GOOGL, soars over +5% after a judge rules that the company will not have to sell Google Chrome. pic.twitter.com/tlydbgOraL
— The Kobeissi Letter (@KobeissiLetter) September 2, 2025
Judge Amit Mehta chose not to force Google to sell its Chrome browser. He also left the door open for Google to keep paying Apple billions for default search placement on iPhones.
The market response was immediate. GOOGL shares jumped 5.9% in after-hours trading as relief washed over Wall Street. Apple stock climbed 2.9% alongside its search partner.
What Google Must Give Up
The court did impose some meaningful restrictions on Google’s business practices. The search giant can no longer sign exclusive distribution deals for its key products.
This affects Google Search, Chrome, Google Assistant, and the Gemini AI app. Competitors now have a better shot at securing distribution partnerships that were previously locked up.
Google also faces a new data-sharing requirement. The company must provide certain search index information to rivals like Perplexity and OpenAI.
This could help AI-powered search tools build better products. It gives them access to valuable data that previously gave Google a huge competitive edge.
AI Reshapes the Game
Judge Mehta credited artificial intelligence with fundamentally changing his approach to the case. He wrote that generative AI “changed the course of this case” in his 230-page ruling.
When the original monopoly trial started, AI chatbots weren’t seen as serious threats to Google. That view has shifted dramatically as tools like ChatGPT gain popularity.
Internet search traffic has actually been falling in 2025. More users are turning to AI assistants for quick answers instead of traditional search engines.
Google has fought back by adding AI Overviews to search results. The company also launched AI Mode to provide more conversational search experiences.
The judge noted that tech giants like Microsoft and Meta have poured billions into AI infrastructure. These companies now pose stronger competition to Google than traditional search rivals ever did.
Market Sees Clear Path Forward
Wall Street analysts are updating their models based on the ruling’s specifics. Cantor’s Deepak Mathivanan called it “as good as it likely gets” for Alphabet.
The analyst maintained his neutral rating with a $201 price target. He doesn’t expect Google to appeal the entire decision.
Mathivanan believes the financial impact will be manageable. Google can still pay for distribution deals, just without exclusive terms attached.
The ruling preserves Google’s ability to compete aggressively while removing some barriers for rivals. Apple continues receiving its estimated $20 billion in annual payments from the search partnership.
Google acknowledged the decision in a statement highlighting AI’s role in creating new competition. The company emphasized that users now have many more ways to access information online.
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