Alphabet Inc.‘s GOOGL GOOG Google is urging the U.S. government to reconsider its antitrust cases, warning that potential breakup proposals could harm the American economy and national security.
What Happened: The U.S. Department of Justice is currently pursuing two anti-monopoly cases against Google, focusing on search and advertising technology. In a recent meeting with government officials, Google representatives expressed deep concerns about proposed remedies that could significantly alter the company’s operations, Reuters reported, citing sources.
The DOJ’s potential remedies include forcing Google to divest its Chrome Web browser and terminate default search engine agreements with companies like Apple Inc. AAPL. A trial to determine appropriate remedies is scheduled for April, with a final ruling expected in August.
Industry analysts have mixed reactions to the proposals. Brian Pitz from BMO Capital Markets described the DOJ’s approach as a “kitchen sink moment,” while JPMorgan‘s Doug Anmuth suggested the current proposals represent a worst-case scenario for Google.
Why It Matters: The antitrust pressure comes as Google simultaneously navigates significant internal restructuring. The company is implementing layoffs in its human resources and cloud divisions while accelerating investments in artificial intelligence infrastructure. CFO Anat Ashkenazi has emphasized cost-cutting as a priority, particularly as demand for AI products continues to grow.
Complicating the landscape, potential changes in administration may impact the antitrust approach. President Donald Trump has previously expressed skepticism about breaking up tech companies, suggesting more nuanced regulatory interventions.
Price Action: Alphabet Inc. Class A shares closed at $170.92 on Tuesday, up 2.34%, and rose another 0.95% after hours to $172.54. Class C shares ended at $172.61, gaining 2.34%, with an additional 0.83% increase to $174.05 after hours, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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