Google’s parent company, Alphabet, experienced a minor stock drop after a judge ruled that Google had violated antitrust laws to maintain its search monopoly. Apple, which could be significantly impacted by the ruling, saw an even smaller decline. Both companies’ stocks fell around 5% due to a broad market slump, but investors remain optimistic.
Judge Amit Mehta confirmed Google’s monopoly in internet search, sustained through exclusive deals with Apple and others. However, the judge found that Google does not hold a monopoly in search advertising, citing competition from rivals like Amazon.
The judge has yet to determine the “remedies” for the antitrust breach, leaving the market to speculate. One potential remedy could be offering consumers a choice of default search engines when setting up new phones.
Investors seem unfazed by the ruling, possibly due to the fact that Google has already implemented similar remedies in Europe without losing market share. Additionally, the growth story of AI remains intact, according to Capital Economics.
The broader market saw a significant decline, with the Nasdaq Composite dropping 3.4% and the S&P 500 falling 3%. However, investors remain optimistic about Google’s future, and the company’s stock price remains steady.