The technology giant Alphabet, commonly known as Google, is climbing to its new all-time high, rising by a staggering 8% in today's session. The company's market capitalization increased by $220 billion just today! The court ruling allows Google to maintain its dominance in the market.
In 2024, the U.S. Department of Justice filed an antitrust lawsuit against the California-based technology company. It pointed to a series of unethical anti-consumer practices and monopolistic tendencies. After nearly a year-long battle, the verdict was reached.
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- Google will not be forced to split its business into several entities, allowing it to retain the economies of scale.
- The court also allowed the company to keep payments to Apple to ensure default status in the iOS system for the Google browser.
In return, the court obligated Alphabet to a series of concessions.
- The company will now be required to share collected data with competitors.
- A ban on exclusive agreements for Google will come into effect.
The Department of Justice considered the verdict as its victory, but Alphabet and Apple investors think otherwise. The companies' valuations are experiencing strong growth, and there is euphoria among shareholders following the verdict. It is worth remembering that these two companies account for 15% of the Nasdaq 100 index. Such a significant increase can pull the entire index up and contribute to a change in sentiment.
Source: Xstation
