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Google just pulled off what many consider a major victory in court, and Wall Street loved every minute of it. Alphabet shares jumped 8% in after-hours trading as Google investors celebrated minimal consequences from a historic antitrust ruling.
The Google antitrust ruling delivered on Tuesday represents a middle-ground approach that reshapes how the search giant operates without dismantling its core business. While Google faces real restrictions, it avoided the nuclear option many feared.
US District Judge Amit Mehta ruled against the most severe consequences proposed by the Department of Justice, including the forced sale of Google’s Chrome browser. “Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system,” the decision stated.
However, the Google antitrust ruling wasn’t entirely painless. Mehta banned exclusive contracts that condition payments or licensing, striking at Google’s distribution strategy that kept competitors at bay for over a decade. The judge specifically targeted “compelled syndication”, deals ensuring Google remains the default choice in browsers and smartphones, which includes deals with companies like Apple.
Google pays Apple roughly $20 billion annually to be iPhone’s default search engine. Apple stock rose 4% after hours when investors realized the gravy train wouldn’t completely derail. The court noted cutting off Google payments would impose “substantial—in some cases, crippling—downstream harms.”
The ruling also forces Google to share certain search index data and user interaction data with competitors, though “not ads data.” This could help rivals build better search experiences while preserving Google’s core competitive advantages.
The post Google Dodges Chrome Sale in Major Antitrust Ruling appeared first on Phandroid.
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The Google antitrust ruling delivered on Tuesday represents a middle-ground approach that reshapes how the search giant operates without dismantling its core business. While Google faces real restrictions, it avoided the nuclear option many feared.
US District Judge Amit Mehta ruled against the most severe consequences proposed by the Department of Justice, including the forced sale of Google’s Chrome browser. “Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system,” the decision stated.
However, the Google antitrust ruling wasn’t entirely painless. Mehta banned exclusive contracts that condition payments or licensing, striking at Google’s distribution strategy that kept competitors at bay for over a decade. The judge specifically targeted “compelled syndication”, deals ensuring Google remains the default choice in browsers and smartphones, which includes deals with companies like Apple.
Google pays Apple roughly $20 billion annually to be iPhone’s default search engine. Apple stock rose 4% after hours when investors realized the gravy train wouldn’t completely derail. The court noted cutting off Google payments would impose “substantial—in some cases, crippling—downstream harms.”
The ruling also forces Google to share certain search index data and user interaction data with competitors, though “not ads data.” This could help rivals build better search experiences while preserving Google’s core competitive advantages.
The post Google Dodges Chrome Sale in Major Antitrust Ruling appeared first on Phandroid.
More...
