Google Triumphs Over Forced Chrome and Android Divestiture

A judge ruled in favor of Google, dismissing U.S. prosecutors' request to make Google divest its Chrome browser and Android OS as part of an antitrust push. Google must share data with competitors to enhance search market competition, while shares surged on Tuesday after the ruling.

In a significant legal decision, a U.S. judge ruled on Tuesday in favor of Alphabet's Google, rejecting prosecutors' request to force the company to sell its Chrome browser and Android operating system. This ruling is part of a broader antitrust initiative aimed at breaking up Big Tech monopolies, but the judge ordered Google to share data with rivals to foster competition in online search.

Google's stock rose 7.8% in after-hours trading following the ruling, which alleviated investor concerns about the potential sale of Chrome and Android—considered crucial to Google's business model. Analyst Deepak Mathivanan from Cantor Fitzgerald noted the data-sharing mandate poses a competitive risk, but one that could take time to materialize.

Although Google intends to appeal, the ruling raises concerns for CEO Sundar Pichai, who fears data-sharing could help competitors reverse-engineer Google's technology. Despite this, the ruling only requires limited data disclosure, emphasizing the challenge competitors face in mimicking Google's search functions.

(With inputs from agencies.)