Google CEO Sundar Pichai during the press conference after his meeting with Polish PM Donald Tusk at Google for Startups Campus In Warsaw in Warsaw, Poland on February 13, 2025. Images)
A federal judge ruled Tuesday that Google can keep its Chrome browser but will be barred from exclusive contracts and must share search data.
Alphabet shares popped 6% in extended trading.
U.S. District Judge Amit Mehta ruled against the most severe consequences that were proposed by the U.S. Department of Justice, including selling off its Chrome browser, which provides data that helps its advertising business deliver targeted ads.
"Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment," the decision states. "Plaintiffs overreached in seeking forced divesture of these key assets, which Google did not use to effect any illegal restraints."
The company can make payments to preload products, but they cannot have exclusive contracts, the decision showed.
The DOJ asked Google to stop the practice of "compelled syndication," which refers to the practice of making certain deals with companies to ensure its search engine remains the default choice in browsers and smartphones.
Google pays Apple billions of dollars per year to be the default search engine on iPhones. It's lucrative for Apple and a valuable way for Google to get more search volume and users.
Apple shares rose 4% on Tuesday after hours.