DOJ Proposes Breaking Up Google Antitrust Case

Shares of Alphabet, Google's parent company, plummeted over 5% following the Department of Justice's (DOJ) call for the company to divest its Chrome browser to address antitrust violations. This follows a court ruling that found Google had monopolized the search market with significant payments to ensure its search engine remains the default on various devices. The DOJ's proposals aim to halt Google's exclusionary practices and promote fair competition, suggesting a ban on default search agreements and a five-year prohibition on re-entering the browser market post-sale. Google's Chief Legal Officer, Kent Walker, criticized the DOJ's actions as government overreach that could undermine security, privacy, and innovation in technology. While the proposed divestment could boost Google's margins by eliminating costly payments, it threatens the company's advertising revenue derived from Chrome. The outcome remains uncertain as the case progresses through the courts, with potential appeals from Google also on the horizon.