In a major victory for Alphabet’s (GOOGL) Google, a U.S. federal judge has ruled that the tech giant is not required to sell its popular Chrome web browser as a remedy in the Justice Department’s landmark antitrust case. While avoiding a forced breakup, Google will face significant restrictions on its business practices to curb anti-competitive behavior. Following the news, GOOGL stock jumped 8% in the after-hours trading session.
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Under the ruling, Google is now required to share its search data with rival platforms to help level the playing field and promote competition. Also, it must offer search and search ad syndication services to rivals at standard rates.
Ban on “Exclusive” Default Search Contracts
The ruling also prohibits Google from entering into new exclusive agreements that make its products the default search engine on phones, browsers, and other devices.
However, Google can still pay partners to feature its products, as long as those deals are not exclusive. Judge Mehta said stopping these payments could hurt innovation and lead to fewer new products.
This means Google can still pay companies such as Apple (AAPL) to keep its search engine as the default option, marking a major win for both tech giants. This is because Apple reportedly makes billions each year from the deal.
It must be noted that U.S. District Court Judge Amit P. Mehta has not yet issued a final judgment. He has directed Google and the Department of Justice (DOJ) to submit a revised final judgment by September 10 that aligns with his opinion.
Google’s Legal Issues
This ruling is the most significant antitrust decision against Google in the U.S. since the DOJ filed its case in 2020. It comes a year after Judge Mehta ruled that Google had illegally maintained a monopoly in online search by striking exclusive deals with device makers such as Apple (AAPL) and Samsung (SSNLF).
Interestingly, Google faces mounting pressure in other markets. In Europe, regulators recently paused a planned fine over Google’s ad tech practices amid concerns about political fallout with the Trump administration. Meanwhile, the company is preparing for another U.S. trial later this month focused on its advertising technology monopoly.
What Is the Target Price for Google Stock?
On TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 27 Buys and nine Holds assigned in the last three months. The average Google stock price target is $217.81, suggesting a potential upside of 3.06% from the current level.
