After a landmark win in the antitrust case against Google Search, the Department of Justice is considering the option of splitting Alphabet’s (GOOGL) Google. The move is seen as one of the remedial measures to end the perceived monopolistic dominance of Google’s Search engine and anticompetitive advertising practices through Google Ads (formerly known as AdWords).
Here’s More About the Possible Outcomes
Reports suggest that DOJ officials are considering several options, such as disjoining the Chrome browser or Android smartphone operating system, to address the situation. Other possibilities include forcing Google to share its Search engine data with competitors and stopping the company from making exclusive contracts that make Google Search the default option on smart devices. The DOJ is said to be discussing the possibilities with competitors and peers to try and put a stop to Google’s monopolistic practices.
The DOJ and Google have until September 4 to present the possible scenarios. U.S. District Judge Amit Mehta, who passed the landmark ruling on August 5, is slated to hear the considerations on September 6.
The final verdict could have unfavorable repercussions for the broader tech sector. If the judge upholds the decision to break up Google, it would mark one of the toughest antitrust remedies ever. Meanwhile, Google is determined to appeal the ruling.
Website Traffic Reflects Google’s Popularity
According to TipRanks’ Website Traffic tool, the total estimated visits to all of Alphabet’s apps and websites worldwide increased by 27.02% in the year-to-date period compared to last year. The strong website footprint hints at Google’s growing popularity.
Is Alphabet a Good Stock to Buy?
Despite the current challenges, Alphabet remains one of the most loved stocks on Wall Street. On TipRanks, GOOGL has a Strong Buy consensus rating based on 30 Buys and seven Hold ratings. Also, the average Alphabet price target of $204.74 implies 24.7% upside potential from current levels. Shares have gained 17.7% year-to-date.
