US markets opened flat on Wednesday, with investors weighing a favourable antitrust ruling for Alphabet and awaiting jobs data that could shape the Federal Reserve’s next move on interest rates.
The Dow Jones Industrial Average fell 22.74 points, or 0.05%, to open at 45,273.43. Meanwhile, the S&P 500 rose 26.85 points, or 0.42%, to 6,442.71, and the Nasdaq Composite climbed 165.61 points, or 0.79%, to start the day at 21,451.63.
A US court has ruled that Alphabet, Google’s parent company, violated antitrust laws but avoided the most severe penalties sought by regulators. The ruling, delivered by Judge Amit Mehta on Tuesday, confirmed that Google unlawfully maintained its dominance in the internet search market but rejected the Department of Justice’s (DOJ) push for structural changes like breaking up Chrome or Android.
Apple benefits financially from Google’s payments to keep its search engine as the default on iPhones—arrangements that may now continue without exclusivity.
The DOJ had argued that Google’s control over Chrome and Android strengthened its monopoly through exclusive distribution deals. However, the court deemed forced divestitures excessive and potentially harmful to consumers.
Key remedies include banning exclusivity in search distribution contracts and requiring Google to provide parts of its search index and interaction data to competitors on fair commercial terms. Google welcomed the decision to avoid breakups but warned that certain measures could impact user privacy.
The DOJ views the outcome as a step toward restoring competition in search and emerging AI products. A final judgement is scheduled for filing on September 10.