Alphabet, the parent company of Google, saw a strong surge in its shares, rising over 6% in pre-market trading following a federal court ruling that rejected the breakup of the tech giant, a move described as a pivotal moment in the company’s trajectory.

The ruling, issued by Judge Amit Mehta, removed a significant regulatory threat that had been looming over the company for years, setting it on a path to increase its market value by more than $160 billion.

Under the decision, Google will retain control over the Chrome browser and Android operating system, while some exclusive contracts considered restrictive to competition were canceled. At the same time, the ruling allowed the company to continue paying billions to its partners, notably Apple, to make its search engine the default option, which in turn led to a 3.7% rise in Apple’s shares.

Analysts believe the decision strengthens Google’s position in the global tech market and gives it a strong push to expand its partnerships, especially with Apple, amid expectations of integrating Gemini AI technologies into future iPhone devices.

Experts described the ruling as a “practical solution far from confrontational tactics,” reflecting the US judiciary’s approach to balancing competition with innovation protection in a regulatory battle that began with the lawsuit against Google in 2020.