Alphabet’s Google scored a major legal victory on Tuesday after a US judge rejected prosecutors’ demand that the tech giant be forced to sell off its Chrome browser and Android operating system. Instead, the court ordered Google to share certain search data with rivals in a move aimed at opening up competition in the online search market.

The ruling, delivered by US District Judge Amit Mehta, immediately lifted investor sentiment. Alphabet’s shares surged nearly 8 percent in after-hours trading, easing long-standing fears of a forced breakup that could have fundamentally altered Google’s business structure.

While the mandated data-sharing will bolster Google’s competitors, analysts noted that it is unlikely to pose an immediate threat. Deepak Mathivanan, an analyst at Cantor Fitzgerald, said, “It will take a longer period of time for consumers to also embrace these new experiences.”

The Department of Justice (DOJ) and Google declined to comment following the decision.

Relief for Investors and Partners

For investors, the avoidance of a Chrome or Android sell-off was particularly significant. Both platforms are central to Google’s ecosystem, which drives advertising and mobile engagement. The ruling also offered reassurance to Apple and other device makers. Judge Mehta confirmed that they could continue receiving lucrative revenue-sharing payments from Google for keeping its search engine as the default option. Analysts at Morgan Stanley have previously estimated that Google pays Apple around $20 billion annually for this arrangement.

At the same time, the judge’s decision made it easier for device makers to preload rival apps, giving competitors a slightly more level playing field.

A Long Legal Battle

The case marks a high point in a five-year legal showdown between Google and US prosecutors. Last year, Judge Mehta determined that Google maintains an illegal monopoly in online search and advertising, setting the stage for this remedies phase. During the April trial, the Justice Department pressed for sweeping measures, including structural changes such as divesting Chrome and Android. Prosecutors argued such steps were necessary to curb Google’s dominance, especially as it pushes into artificial intelligence.

Google, however, contended that these demands were excessive and risked handing over its hard-earned technological edge to rivals. CEO Sundar Pichai testified that the data-sharing requirements could allow competitors to reverse-engineer Google’s proprietary systems.

In his ruling, Mehta struck a middle ground. He declined to order the full range of disclosures requested by prosecutors and stressed that competitors still face hurdles. “For starters, this remedy requires only disclosure of underlying data; it will be up to [the competitors] to engineer the technology and develop the infrastructure to make use of it,” he wrote.

Bigger Battles Ahead

Despite the victory, Google’s legal challenges are far from over. The company is preparing for another trial later this month over its dominance in online advertising technology, after a judge previously ruled that Google holds illegal monopolies in that space. Additionally, the company continues to contest a ruling in favour of Epic Games that requires changes to its app store practices.

The DOJ’s cases against Google form part of a broader bipartisan push to rein in Big Tech, a movement that began under President Donald Trump and now spans investigations into Meta Platforms, Amazon, and Apple.

For now, though, Google’s narrow escape from a forced breakup is a welcome relief to shareholders—and a reminder that its dominance, while challenged, remains intact.