Alphabet’s (GOOGL) Google is gearing up for a legal battle with the Department of Justice (DOJ) that could force it to sell its Chrome web browser. The DOJ is arguing that Google has broken antitrust laws by guaranteeing its search engine is the default for a majority of users.
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Google achieves this by setting its search engine as the default for users of its Chrome web browser. It also pays Apple (AAPL) to be the default search engine on its Safari web browser. Additionally, Google’s Android devices also default to Chrome and its search engine.
The DOJ wants Google to sell Chrome and turn it into an independent company. It also seeks to stop the tech giant from paying for Google search as the default engine web browsers use. On top of that, the DOJ may force Google to sell its Android division to further reduce the company’s market domination.
What This Means for Google
If the DOJ wins its case against Google, more search engine options may pop up on Chrome. A similar change was made in Europe with the passing of the Digital Markets Act, which saw Google search rival DuckDuckGo get a roughly 75% increase in searches through Chrome.
Another change that might be forced on Google is sharing its search data. This data allows it to better understand how users search, which gives it an advantage over its rivals. The DOJ wants to remove that advantage by requiring the company to share this information.
When Could These Changes Go Into Effect?
The case between Google and the DOJ starts in April 2025, and the judge ruling on it plans to reach a decision by August 2025. However, that doesn’t mean results will be immediate.
If Google loses the case, it will likely appeal the decision. The tech company may also offer alternative plans to reduce its dominance without giving in to the DOJ’s demands. That means users may not see the effects of this legal battle for the next couple of years.
Is Google Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus for Google is Strong Buy based on 27 Buy and 7 Hold ratings over the last three months. With that comes an average price target of $207.75, a high of $240, and a low of $170.
