U.S. Court Blocks Alphabet Breakup, Shares Surge 6%

Alphabet's stock surged over 6% following a U.S. federal court ruling that rejected the breakup of Google, its parent company, allowing it to retain control of key assets like the Chrome browser and Android operating system. The court imposed some restrictions, including barring certain exclusive contracts and mandating data-sharing to support competition and AI development, but allowed Google to continue payments to partners such as Apple to feature its search engine. Analysts widely view the ruling as a favorable outcome, describing it as a pragmatic solution that avoids drastic structural changes and preserves Google's core business and revenue streams. The decision also facilitates deeper collaboration with Apple, potentially integrating Google's Gemini AI into future iPhones, which could benefit Apple's services segment significantly. This legal victory removes a major regulatory overhang, boosting investor confidence and potentially adding over $160 billion to Alphabet's market value while supporting further growth amid an evolving competitive landscape shaped by AI advancements. Overall, the ruling is seen as a balanced approach that maintains competition while recognizing rapid market changes driven by generative AI.