Google parent Alphabet Inc (NASDAQ:GOOG) soared in afterhours trading after a US judge's ruling indicated that it will not have to separate off its Chrome browser business.
Alphabet Class A shares rose 7.1% to $226.30 and Apple Inc (NASDAQ:AAPL, ETR:APC) rose 3%, after Judge Amit Mehta ruled that the ongoing $20 billion search deal between the two tech behemoths will remain and not be barred in its current form.
The Federal Court statement in the US versus Google antitrust case was that "Google will not be barred from making payments or offering other consideration to distribution partners from preloading or placement of Google Search, Chrome, or its GenAI products", the judge wrote.
Analyst Dan Ives at Wedbush said: "This was a black cloud worry over Apple's stock as investors worried a Google Chrome breakup and/or forced to extinguish the search deal with Apple was potentially on the docket."
He says it is "a monster win for Cupertino" and for Google it is "a home run ruling that removes a huge overhang on the stock".
While in theory Google is barred from "exclusive deals" for search, Ives said it now "lays the groundwork for Apple to continue its deal" and means it could also agree more AI-related partnerships with Google Gemini.