Alphabet’s shares rose by 7.8 percent in extended trading on Tuesday as investors welcomed the court ruling.
A judge granted Google, a subsidiary of Alphabet, a major victory on Tuesday by rejecting plaintiffs’ demands to force the tech giant to sell its popular Chrome browser and Android operating system as part of a broader antitrust campaign, but ordered the company to share data with competitors.
Alphabet’s shares rose by 7.8 percent in extended trading on Tuesday following the court’s decision.
While sharing data with competitors will strengthen Google’s rivals in the advertising domain it dominates, not having to sell Chrome or Android removes a major concern for investors who see them as key parts of Google’s overall business.
Deepak Mathivanan, an analyst at Cantor Fitzgerald, said that data-sharing requirements pose a competitive risk to Google but not immediately.
He said, “It will take a longer time for consumers to also adopt these new experiences.”
The ruling was also a relief for Apple and other device makers and web browsers, as U.S. District Judge Amit Mehta said they could continue receiving ad revenue-sharing payments from Google for searches on their devices.
Morgan Stanley analysts said last year that Google pays Apple $20 billion annually.
However, the ruling made it easier for device makers and others who set Google Search as the default to load apps made by Google’s competitors.
Google had earlier said it plans to appeal the ruling, meaning it could take years before the company is required to comply.
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