The U.S. Department of Justice (DOJ) is ramping up efforts to break up Google’s dominance in the search market, and it could deal a serious blow to the tech giant’s core business and its growing ambitions in artificial intelligence (AI). Analysts believe the proposed remedies, though potentially years away, could weaken Google’s revenue streams and boost competition in the tech space.
Last week, the DOJ signaled it might ask a judge to force Google, owned by Alphabet to sell off some of its most critical assets like the Chrome browser and Android operating system that have helped maintain its monopoly in online search. Prosecutors are also considering other major changes, like limiting Google’s ability to collect sensitive user data, forcing it to share its search results and indexes with competitors, and giving websites the option to block their content from being used to train AI systems. There’s even talk of creating a “court-appointed technical committee” to keep a close eye on the company’s actions.
The news sent a ripple through the stock market, with Alphabet’s shares dipping by 1.5% to $161.86 after the DOJ’s announcement, adding to the pressure the company already faced from the ruling to open up its app store.
These potential remedies go right to the heart of Google’s business, which has become almost synonymous with search itself. If implemented, they could significantly cut into the company’s profits and create space for competitors to grow.
“The DOJ has reverse-engineered Google’s formula for success and is intent on dismantling it,” said Gil Luria, Managing Director and Senior Software Analyst at D.A. Davidson. He pointed out that, “The proposed privacy and data accumulation remedies would give Google the choice to either share all the data it collects or stop gathering the data in the first place. As it will likely choose the former, that could strengthen its competitors and possibly create new competition.”
As the DOJ continues to push for antitrust action, the outcome could reshape the future of not just Google, and other hyperscalers, but the entire tech landscape especially in areas like AI where Google has been positioning itself for leadership. But for now, the regulatory challenges are just beginning, and it looks like the road ahead for Google could be a long and difficult one.
