- Reuters reports that Alphabet’s Google met with Trump’s administration last week to oppose a DOJ push to break up its search and ad tech businesses, with a trial on remedies set for April and a ruling expected in August.
- The DOJ proposes divestitures like Chrome and ending default search deals with Apple’s iPhone, prompting Google to warn that such actions could harm the U.S. economy and national security.
- Industry experts predict Trump may ease Biden-era antitrust efforts, potentially sparing Google a breakup, as the company defends its dominance ahead of the April showdown.
Alphabet’s Google (GOOG, GOOGL) finds itself at a critical juncture as it engages with President Donald Trump’s administration, pressing for a retreat from efforts to dismantle the tech giant, a stance confirmed by a Reuters source familiar with discussions held last week. With the U.S. Department of Justice (DOJ) advancing two anti-monopoly cases – one targeting Google’s search dominance and another its advertising technology – the company is bracing for a pivotal trial in April to determine remedies, with a final ruling slated for August. The DOJ has proposed severe measures, including forcing Google to divest its Chrome browser and terminate lucrative default search agreements with devices like Apple’s (AAPL) iPhone, moves that could reshape the digital landscape.
Google’s plea to the Trump administration reflects its broader concerns, articulated by a spokesperson: “We’re concerned the current proposals would harm the American economy and national security.” This argument underscores the company’s position that aggressive antitrust action could weaken a key U.S. innovator, especially as global competition in technology intensifies. The company’s routine dialogues with regulators, including the DOJ, highlight its proactive approach to defending its integrated ecosystem, which it argues drives efficiency and user benefit. Yet, the DOJ’s silence in response to Reuters’ inquiries leaves the government’s next steps uncertain, amplifying the stakes as the April trial looms.
Industry experts suggest a shift in tone under Trump, who may scale back the antitrust fervor of the Biden era, potentially softening the push to break up Google’s search empire. This speculation offers Google a glimmer of hope, as the company navigates the dual legal fronts – search and ad tech – that threaten its valuation. The proposed remedies, like shedding Chrome or ending iPhone deals, strike at the heart of Google’s revenue model, which thrives on its 90%+ share of the search market. As the August ruling nears, Google’s meetings with Trump’s team signal a strategic pivot, leveraging political goodwill to counter the DOJ’s structural overhaul demands, all while emphasizing the broader economic and security implications of such a breakup.
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