Google market value gains $230 billion-plus in flat four days as ...

Google's parent company, Alphabet, led a monumental week for the tech sector, with its shares jumping more than 10% after a federal judge issued a remedy in its historic antitrust case that stopped short of the most severe penalties. U.S. District Judge Amit Mehta ruled on September 2 against the Department of Justice’s (DOJ) call for forced divestiture of key assets like the Chrome browser and the Android operating system. The decision sent a wave of relief through investors, propelling Alphabet’s stock up 8% in extended trading on Tuesday and over 10% for the week. The positive momentum helped push the combined market capitalization of the eight US trillion-dollar tech companies to $21 trillion, gaining a collective $420 billion in market cap this week alone. Of this, Google alone gained $230 billion-plus.

Judge Mehta, who found Google guilty of maintaining an illegal monopoly in internet search last year, stated in his decision that the plaintiffs "overreached" in seeking to break up these core businesses. "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 ruling stated. "Plaintiffs overreached in seeking forced divestiture of these key assets, which Google did not use to effect any illegal restraints."

Apple, the other big winner of Google's win
The federal court's decision also provided a significant boost to Apple. As the ruling allows the two tech giants -- Apple and Google -- to continue their multi-billion dollar agreement, which makes Google the default search engine on iPhones and other Apple devices.

This development was a key factor in a strong week for both companies' stocks. Alphabet's shares rose more than 10%, while Apple's stock climbed 3.2%. Their performance helped propel the Nasdaq up by 1.1% for the week.Analysts at Wedbush Securities highlighted the positive market reaction in a recent note to investors. They said the court's decision "removed a huge overhang" for Alphabet and a "black cloud worry" for Apple. The analysts added that the ruling also "lays the groundwork" for a potential expansion of their partnership into artificial intelligence, specifically involving Google's Gemini AI models.

Google on DoJ ruling
In a blog post, Google said it has "concerns about how these requirements will impact our users and their privacy" but acknowledged that the court recognized the potential harm of a forced breakup. The DOJ, in a press release, said the ruling "recognizes the need to prevent Google from using the same anticompetitive tactics for its GenAI products as it used to monopolize the search market."

The landmark antitrust trial began in September 2023. Judge Mehta has ordered the parties to meet by September 10 for the final judgment, officially closing a chapter in one of the most significant antitrust cases in modern U.S. history.