US judge orders Google to share search data with competitors

A judge ruled largely in favor of Alphabet's Google on Tuesday, rejecting U.S. prosecutors' bid to make the company sell off its popular Chrome browser and Android operating system, but compelling the tech giant to share data with competitors to open up competition in online search.

Alphabet shares were up nearly 6.7% in extended trading on Tuesday as investors cheered the judge's ruling.

While sharing data with competitors will strengthen Google's rivals to its market-dominating advertising business, not having to sell off Chrome or Android removes a major concern for investors who view them as key pieces to Google's overall business. The ruling was also a relief for Apple and other device and Web browser makers, whom U.S. District Judge Amit Mehta said can continue to receive advertising revenue-sharing payments from Google for searches on their devices. Google pays Apple $20 billion annually, Morgan Stanley analysts said last year. Google has said previously that it plans to file an appeal, which means it could take years before the company is required to act on the ruling. Google CEO Sundar Pichai expressed concerns at trial in the case in April that the data-sharing measures sought by the U.S. Department of Justice could enable Google's rivals to reverse-engineer its technology. The ruling results from a five-year legal battle between one of the world's most profitable companies and its home country, the U.S., where Mehta ruled last year that the company holds an illegal monopoly in online search and related advertising. At a trial in April, prosecutors argued for far-reaching remedies to restore competition and prevent Google from extending its dominance in search to artificial intelligence.

Google said the proposals would go far beyond what is legally justified and would give away its technology to competitors.

In addition to the case over search, Google is embroiled in litigation over its dominance in other markets. The company recently said it will continue to fight a ruling requiring it to revamp its app store in a lawsuit won by "Fortnite" maker Epic Games. And Google is scheduled to go to trial in September to determine remedies in a separate case brought by the Justice Department where a judge found the company holds illegal monopolies in online advertising technology.

The Justice Department's two cases against Google are part of a larger bipartisan crackdown by the U.S. on Big Tech firms, which began during President Donald Trump's first term and includes cases against Meta Platforms, Amazon and Apple.