By Christine Ji
Google can keep its Chrome browser, but must end exclusive contracts in search and some other businesses
Judge Amit Mehta ruled that Google would not have to divest its Chrome browser.
Alphabet Inc.’s Google dodged a worst-case scenario Tuesday after a federal judge rejected the Justice Department’s demand that it sell the Chrome browser.
U.S. District Judge Amit Mehta released his remedies for Google’s (GOOGL) (GOOG) previously established violations of federal antitrust law, and investors had been waiting to hear the remedies that would come as an aftermath to his original decision. While Mehta’s latest ruling prohibited Google from having exclusive contracts for its Google Search, Chrome, Google Assistant and Gemini products, it did not require the divestiture of Google Chrome – which a Baird analyst recently estimated to be worth $100 billion.
Alphabet’s stock rose 8% in after-hours trading following the announcement.
Prior to the decision, Wall Street analysts weren’t sure what the scale of the remedies would be, but they had largely ruled out a major breakup of Google.
BMO Capital Markets analyst Brian Pitz wrote in a note that he was expecting “significant, but not draconian changes to Google’s business” – with the most likely outcome being a “comprehensive behavioral consent decree” involving a ban on paying to be the default search engine, as well as new rules to give users more choice. He anticipated that Google’s stock could fluctuate 10% in either direction following the decision.
Michael Sansoterra, chief investment officer at Silvant Capital Management, told MarketWatch that a full divestiture would be “too extreme,” and would harm consumers who prefer to use Chrome by disrupting the browser’s integration across other Google products.
However, Pitz believes there could be more challenges down the road. Another antitrust case found Google guilty of manipulating advertising auctions to favor its own products, and the ruling allows the DOJ to pursue remedies such as breaking up parts of Google’s ad-tech business.
Sansoterra and Pitz both expect Google to appeal the ruling.
-Christine Ji
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09-02-25 1721ET
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