Alphabet shares slide 4% following DOJ push for Google to divest Chrome
Alphabet shares fell after the Department of Justice proposed that Google divest its Chrome browser to end its search monopoly.
The proposed breakup would, according to the DOJ filing Wednesday night, "permanently stop Google's control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet."
It's the latest development in a yearslong, bipartisan antitrust battle against Google. In August, a federal judge ruled that the company held an illegal monopoly in both search and text advertising, violating Section 2 of the Sherman Act. The DOJ's request represents the agency's most aggressive attempt to break up a tech company since its antitrust case against Microsoft, which reached a settlement in 2001.
Chrome, which Google launched in 2008, provides the search giant with data it then uses for targeting ads. The DOJ said in the filing that forcing the company to get rid of Chrome would create a more equal playing field for search competitors.
"To remedy these harms, the [Initial Proposed Final Judgment] requires Google to divest Chrome, which will permanently stop Google's control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet," the 23-page filing reads.
Additionally, the DOJ said that Google should be prevented from entering into exclusionary agreements with third parties like Apple and Samsung. The department also said Google should be prohibited from giving its search service preference within its other products.
well with the regulations and the way they're forcing them to stop the chrome thing investors will be troubled. The market is very volatile now, the least bad regulation could spell doom for an company stocks