Google Plummets Nearly 6% as DOJ Targets Chrome and Android in Monopoly Crackdown
The DOJ just dropped a bombshell on Alphabet, Google's (NASDAQ:GOOG) parent company, calling for the divestiture of Chrome in a bold move to dismantle its alleged search monopoly. This isn't just a slap on the wristit's a direct hit to Google's dominance. The DOJ wants Chrome, which has been a gateway for search ads and user data since 2008, sold off to level the playing field for rivals like Bing and DuckDuckGo. But that's not all: the DOJ is also gunning for Google to end its multi-billion-dollar deals with Apple and Samsung that make it the default search engine on their devices. In short, they're asking Google to rewire its entire business model.
And the market didn't take the news lightly. Alphabet's stock tanked more than 6% as investors tried to digest what this means for Google's empire. Chrome alone could fetch a whopping $20 billion in a forced sale, but losing it would cut Google off from one of its key data pipelines. Meanwhile, Android, the backbone of most smartphones, is also on the DOJ's radar. Although a breakup of Android seems less likely, the feds want restrictions on how Google uses the platform to give its own services an edge. Critics say these moves could spark a new era of competition, while skeptics warn that divestitures might just create more monopolies. Alphabet? They're calling this a radical overreach and plan to fight tooth and nail.
What's next? Judge Amit Mehta is expected to weigh in by next summer, and his decision could reshape the future of tech as we know it. Whether it's Chrome, Android, or just tighter behavioral restrictions, the potential ripple effects are massive. Google's ability to adaptor appealwill be crucial. For now, investors are left bracing for what could be one of the biggest antitrust reckonings in Big Tech history.
