If you thought a new government would ease Alphabet’s (GOOGL), Google’s parent company, antitrust ordeal with the Department of Justice, think again.
The U.S. Justice Department (DOJ) has revised its proposal in the ongoing antitrust case against Google, allowing the tech giant to keep its current Investments in AI startups. Anthropic, the chatbot ‘Claud’ developer, is a notable name. However, Google must now notify regulators before making any future AI investments. This change signals that the government remains wary of Google’s influence in the rapidly growing AI sector but wants to avoid disrupting the industry.
The DOJ Is on the Offensive
The DOJ initially planned to force Google to unwind its stake in Anthropic, where it has invested about $3 billion alongside Amazon (AMZN). Critics, including Anthropic itself, argued that such a move could stifle competition rather than promote it. Now, instead of an outright ban, regulators will monitor Google’s AI investments to prevent potential monopolistic behavior.
Despite this adjustment, the DOJ is still pursuing aggressive measures to curb Google’s dominance in online search. The agency maintains that Google’s control over the search market harms competition and consumers. A key element of the government’s case is the demand that Google sell its Chrome web browser. The DOJ argues that divesting Chrome is necessary to level the playing field, as Google has used its browser’s dominance to reinforce its search monopoly.
Google has pushed back, calling the proposed remedies extreme and unfair. A trial to determine how to resolve Google’s antitrust violations is set for April, with a final decision expected by August 2025.
Is Google a Buy, Hold, or a Sell?
Turning to Wall Street, Google is considered a Moderate Buy. The average price target for GOOGL stock is $215.56, suggesting a 23.98% upside potential.
