Federal Judge Upholds Google Search Deal with Apple in Antitrust Case

A federal judge ruled in favor of Google in the ongoing DOJ antitrust case by allowing it to keep its Chrome browser and Android platform without divestiture, while banning exclusive search distribution deals. This ruling permits Google to continue paying Apple billions to maintain Google as the default search engine on Apple devices, preserving a lucrative $20 billion search deal that analysts describe as a "massive win" for both companies. Investors reacted positively, with Alphabet and Apple shares rising significantly after the ruling. Analysts from Wedbush, JPMorgan, and Bank of America expect the decision to remove a major overhang on both stocks and anticipate the companies may even strengthen their AI partnership, notably around Google's Gemini AI. The ruling forces Google to share limited search query and indexing data with competitors, potentially aiding rivals and AI startups, but stops short of breaking up Google's core assets. Overall, the decision is seen as a relief for Apple amid regulatory challenges and a boost for Google's market position in search and AI competition.