"Last year, U.S. District Judge Amit Mehta ruled in favor of the U.S. Department of Justice in a lawsuit against Google, saying that the search engine giant had indeed acted as an illegal monopoly with its digital advertising practices. But yesterday, Mehta stopped short of granting the DOJ's request to have Google divest Chrome. Furthermore, Mehta ruled that Alphabet can keep paying partners to feature the Google search engine on their browsers, and this is why Apple stock is trading well today."
"Apple stock struggled earlier this year, as investors worried that President Donald Trump's tariffs would significantly upend the iPhone maker, which has most of its supply chain abroad in countries like China, Vietnam, and India. But recently, Apple managed to get an exemption from several of the tariffs by promising to invest hundreds of billions in the U.S. Now, the ruling on the Google lawsuit is another big win."
A federal judge ruled that Alphabet need not divest Chrome and can continue paying partners to make Google the default search engine. Shares of Apple rose over 3% as Apple receives substantial default-search payments from Alphabet; filings showed Alphabet paid Apple $20 billion in 2022 for default placement. Earlier findings determined Google acted as an illegal monopoly in digital advertising, but the divestiture demand was denied. Apple secured exemptions from several tariffs by promising large U.S. investments, easing tariff concerns. Investors remain cautious about Apple’s broader artificial intelligence strategy and potential lingering tariff costs.
Read at The Motley Fool
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