Google Loses Over $100 Billion in Market Value Following Antitrust Proposals

Alphabet Inc., Google’s parent company, has faced one of its most significant market value losses in recent history, exceeding $100 billion.

This sharp decline follows proposals from the U.S. Department of Justice (DOJ) aimed at curbing Google’s monopoly in the internet search market.

Key Proposals from the Department of Justice

The DOJ’s highlighted actions include:

Sale of the Chrome Browser: Google may be forced to divest its popular browser, used by over 60% of internet users worldwide.
Separation of the Android Operating System: This measure seeks to divide Android from Google’s core operations.
Elimination of Exclusive Agreements: Contracts that set Google as the default search engine on Apple devices would be prohibited.

These measures aim to reduce Google’s dominant position and foster fairer competition in the digital market.

U.S. Department of Justice Building
Photo: U.S. Department of Justice headquarters.

Market Impact and Google’s Response

The market reacted immediately, with Alphabet’s shares dropping more than 5% upon opening after the announcement. This represents a market value loss of over $100 billion for a company that was valued at more than $2 trillion prior to the news.

Google has rejected these proposals. Kent Walker, Google’s Chief Legal Officer, stated that the measures “would break apart a range of products that people love and find useful in their daily lives.” The company argues that the proposals go beyond previous court decisions and plans to present its counterarguments in December.

Chrome Logo
Photo: Chrome, one of the products Google may be forced to sell.

Timeline and Case Resolution

The legal process continues, with the following key milestones:

December 2024: Google will present its arguments against the proposed measures.
March 2025: The DOJ will submit additional arguments to bolster its position.
April 2025: A hearing in the case is scheduled.
August 2025: Judge Amit Mehta is expected to issue a ruling.

Any decision could be appealed, potentially extending this legal battle further.

A Historic Case

This case represents one of the most drastic interventions against a tech company since the 2000 order to break up Microsoft, a decision later overturned by higher courts. The tech community and investors are closely monitoring the developments, which could redefine the competitive landscape for Google and other major tech companies.

Google Headquarters in the U.S.
Photo: Google headquarters, the focus of the DOJ investigation.

Conclusion

The case against Google not only aims to reshape the structure of one of the world’s most influential tech companies but also to set a precedent for future regulations in the tech industry. The final resolution could have significant implications for the digital market and the operations of major corporations in this sector.

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