DOJ Targets Google

Key Takeaways

• DOJ Targets Google – Pushes for Chrome divestment and bans default search deals to curb monopoly.
• AI Oversight, Not Breakup – Drops AI divestment demand but adds strict monitoring rules.
• Legal Battle Looms – April-May hearings could reshape Google’s future in search, ads, and AI.

DOJ Pushes for Google Breakup, Stock Declines

The U.S. Department of Justice (DOJ) has intensified its antitrust case against Google (GOOGL), reaffirming its demand in a March 8, 2025, filing that the company divest its Chrome browser. Chrome, which processes over 30% of search queries, serves as a critical gateway for Google’s search dominance. In addition, the DOJ seeks to prohibit Google’s lucrative contracts with Apple (AAPL) and Android manufacturers that set Google Search as the default option. These agreements cost Google $26 billion in 2021 alone, with Apple reportedly receiving between $18 billion and $20 billion.

Despite Google’s extensive lobbying efforts, the DOJ remains firm, arguing that divesting Chrome would foster competition and prevent Google from maintaining its monopoly through default search placements. Alphabet’s stock dropped nearly 5% on Monday in response to the DOJ’s filing, continuing a broader downward trend, with shares now down almost 13% year-to-date. The broader Nasdaq index also saw a sharp decline of 3.2%, shedding nearly 600 points.

DOJ Softens Stance on AI, Increases Oversight

While pushing forward with its case against Google’s search monopoly, the DOJ has relaxed its stance on the company’s artificial intelligence investments. Initially, the Biden administration sought to force Google to sell its AI stakes, including its $3 billion investment in OpenAI rival Anthropic. However, the Trump-led DOJ has instead proposed reporting requirements to monitor Google’s future AI investments.

This shift likely reflects broader concerns about the global AI race, particularly competition with China. Legal experts note that forcing Google to divest its AI holdings could have inadvertently strengthened Microsoft-backed OpenAI, tilting the AI landscape. Anthropic itself has argued that such a move would be unfair and disrupt AI innovation. While this rollback is a concession, it comes with stricter regulatory oversight, ensuring Google’s AI investments do not reinforce its search monopoly.

Legal Battles and Market Uncertainty

The case is now set to move forward, with hearings scheduled for April and May before U.S. District Judge Amit Mehta, who holds the final decision over Google’s $2 trillion empire. Mehta previously ruled in August 2024 that Google illegally monopolized online markets for “general search” and “general search text.” The DOJ has also proposed additional remedies, including requiring Google to share search and advertising data with competitors to level the playing field. If these initial measures prove ineffective, regulators may push for an even more drastic step—forcing Google to divest its Android operating system.

Google has vowed to appeal any ruling against it, setting the stage for a lengthy legal battle with potentially far-reaching consequences. With its stock under pressure and regulatory scrutiny intensifying, the outcome of this case could reshape the digital economy and redefine competition in search, advertising, and AI.