Alphabet’s shares, Google’s parent company, closed with an increase of more than 9% on Wednesday after an American judge issued a sentence against the company’s dissolution, eliminating a large regulatory load and adding about 210 billion dollars to the company’s market value.
Judge’s Judge Mehta Judge allows Google to keep control of its Chrome browser and the Android mobile operating system, while prohibiting certain exclusive contracts with manufacturers of devices and developers of browsers.
Google was also allowed to continue payments to members such as Apple so that its search engine is integrated into the brand’s devices. The actions of the iPhone manufacturer company rose 3.8%.
“This result eliminates an important legal burden and points out that the court is willing to seek pragmatic solutions instead of razed land tactics,” said Matt Britzman, a senior analyst of shares in Hargreaves Lansdown.
Alphabet’s shares, which reached an intradic record of $ 231.31, have risen almost 22% this year, surpassing the S&P 500 index, but being behind their pair in Big Tech, goal.
The sentence preserves Alphabet’s ability to deepen his association with Apple and potentially integrate his artificial gemini intelligence into future iPhones, according to analysts.
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“Google payments were a great source of income for the technological giant, and the fact that they can continue will be a relief in what has been a turbulent year,” said Ben Barringer, head of technological research in Quilter Cheviot, an investor in Apple and Alphabet.
Apple was in preliminary conversations to use Gemini artificial intelligence as a basis for a renewed version of its Siri voice assistant on its devices, Bloomberg News reported last month.
The US government sued Google in 2020, accusing it of illegally maintaining a monopoly in the search through exclusive agreements with manufacturers of devices and developers of browsers.
Alphabet’s actions are quoted 20.3 times the expectations of profits, a discount compared to other actions of the so -called “Magnificent Seven” and the broader S&P 500 index.
CHALLENGE TO THE DOMAIN IN THE SEARCH
The Justice Department said that the measures taken will open the search service market and protect competition in generative artificial intelligence (Genai).
Judge Mehta dictated last year that Google violated antitrust laws, but on Tuesday he decided not to order the dissolution, citing the appearance of artificial intelligence tools such as Chatgpt as an emerging competence.
MOST CONTEXT: Judge in the US allows Google to conserve Chrome and Android
Google must share certain search indexes and interaction data with its competitors, according to the sentence, a measure that could help artificial intelligence rivals to build and improve their chatbots and search tools.
However, Google’s scale and leadership in terms of data are still a formidable advantage, analysts said.
“The order requires an exchange of data that is limited in scope, in a way that we conclude could only marginally increase the competence of generative artificial intelligence services,” said Nick Rodelli, a legal analyst in the Washington analysis of Cffra Research.
With Reuters information.
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