Google's lucrative ad tech business goes on trial

Published On Sep 8, 2024, 7:58 PM

The US government is initiating a trial against Alphabet, Google's parent company, alleging that it engages in monopolistic practices in the digital advertising sector. With Google earning over $200 billion from ad revenues last year, the Department of Justice (DoJ) claims that Google's dominance stifles competition and innovation. Alphabet argues that it operates in a competitive market, citing growth from other companies like Apple and TikTok. The case follows a recent ruling that found Google guilty of anti-competitive behavior in search, and observers anticipate that any penalties will likely involve adjustments to Google's business practices rather than a breakup. Additionally, regulators in the UK are also expressing concerns about anti-competitive behavior in Google's ad tech business.

Read full article

Stock Forecasts

GOOGLView GOOGL chart on TradingView

Negative

The ongoing antitrust trials present significant uncertainty for Alphabet, particularly regarding its core advertising revenue stream, which could face disruptions if the court sides with the DoJ. While the likelihood of an immediate breakup seems low, regulations that force changes in business practices could negatively impact profitability.

Related News

Google stock will surge despite DOJ's breakup push: D.R. Barton | Fox Business Video

Woodshaw Financial Group principal D.R. Barton analyzes the election betting market and weighs in on Google's possible breakup on 'Varney & Co.

GOOGL

Wall Street shrugs at Google’s legal setbacks isn't denial, it's pragmatism: Morning Brief

Oct 10, 2024, 5:59 AM

As the Justice Department seeks to possibly break up Google, the search giant's parent company's stock has barely moved.

GOOGL

Why Breaking Up Google Would Be Difficult

Oct 9, 2024, 8:11 AM

The Justice Department could push for the tech giant to sell off a business to end its lock on online search. But a move would be tough to pull off.

GOOGL