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In a major win for Big Tech, Alphabet and Apple stocks surged following a U.S. federal court ruling that spared Google from a forced breakup in its long-running antitrust battle. The decision, handed down by Judge Amit Mehta, allows Google to retain its Chrome browser and continue paying partners like Apple for default placement of its search engine—while banning exclusive contracts that limit competition.
Alphabet’s stock jumped 7% in after-hours trading, while Apple gained 3%, signaling renewed investor confidence in the stability of their core business models. The ruling is seen as a pivotal moment for the tech sector, which has faced increasing scrutiny over monopolistic practices and market dominance.
The court’s decision prohibits Google from entering exclusive agreements for products like Chrome, Google Search, and Gemini, but permits ongoing revenue-sharing deals. This means Google can still pay Apple an estimated $20 billion annually to remain the default search engine on iPhones and other Apple devices—a stream of income that significantly boosts Apple’s services revenue.
Analysts at Bank of America responded swiftly, raising their price targets for both companies. Alphabet’s target was lifted to $252 per share, while Apple’s rose to $260, reflecting optimism about long-term growth and regulatory clarity.
The ruling also opens the door for Apple to explore new partnerships with AI-driven search platforms, potentially expanding its influence in the emerging generative AI space. With Google required to share portions of its search index with qualified competitors, Apple may gain leverage in future negotiations with alternative providers.
For investors, the verdict removes a major regulatory overhang that had clouded valuations for months. It also signals that courts may favor moderate remedies over radical restructuring, offering reassurance to other tech giants facing similar legal challenges.
As the dust settles, Alphabet and Apple appear well-positioned to capitalize on their existing strengths while navigating a more competitive—but less restrictive—digital landscape.