Wall Street’s optimism that President Donald Trump might take a softer stance in the ongoing antitrust case against Google’s parent company, Alphabet (GOOGL), is diminishing.
This shift comes as the US Department of Justice (DOJ) has reiterated its call for a more aggressive approach, proposing that Google be forced to divest its Chrome browser.
Late Friday afternoon, the DOJ filed a document reaffirming its stance, urging a court order requiring Alphabet to sell Chrome. The Biden administration had previously pushed for the same remedy last year, alongside demands to end Google’s search-related payments to Apple (AAPL). These actions are part of broader legal efforts to address concerns about Google’s monopoly power in the online search market.
In the recent filing, while the DOJ maintained its proposal for the divestiture of Chrome, it retreated from its earlier suggestion to force Google to divest its investments in artificial intelligence ventures, including its stake in the AI startup Anthropic, where the company has invested billions.
The DOJ criticized Google’s practices, calling its actions “illegal” and accusing the company of maintaining a monopoly that stifles competition.
“Google’s illegal conduct has created an economic goliath, one that wreaks havoc over the marketplace to ensure that — no matter what occurs — Google always wins,” the DOJ stated in the filing.
In August, Federal Judge Amit Mehta ruled that Alphabet had unlawfully maintained a monopoly over online search, blocking competitors from developing viable alternatives. Judge Mehta is expected to hear arguments on proposed remedies in April and issue a decision by early August.
Additionally, a separate antitrust case against Google is progressing. The DOJ is challenging the company’s dominance in the digital advertising space, claiming it has harmed advertisers and content creators. This case, sometimes referred to as the “DoubleClick trial” due to Google’s 2008 acquisition of digital advertising firm DoubleClick for $3.1 billion, is set to move forward with a ruling expected in the spring. Although a settlement with the Trump administration and Alphabet remains possible, the situation is rapidly evolving.
Google’s stock, which saw a slight dip Sunday night, has faced challenges in 2025, retreating by 8%. Despite a 2.1% rise last week, the stock remains below Alphabet’s 200-day moving average. Google’s strong financial performance is reflected in its Composite Rating of 96 out of 99, according to IBD Stock Checkup.
In the meantime, a coalition of 38 state attorneys general and the DOJ have submitted a revised proposal to address Google’s alleged monopoly over internet search. Tennessee Attorney General Jonathan Skrmetti, who leads the multistate coalition, emphasized that the remedies package is designed to restore competition and benefit consumers. The revised proposal includes banning search-related payments to distribution partners, such as Apple and Android, and requiring Google to divest Chrome. If these measures are insufficient, further actions, including the potential divestiture of Android, could be considered.
The state plaintiffs would also have the right to review Google’s future financial interests in search and AI competitors, ensuring the company does not use monopolistic practices in emerging technologies. The proposed remedies also call for Google to share portions of its search index and ad data with competitors for a limited time, with privacy concerns taken into account.
A hearing on these proposed remedies is scheduled to begin on April 21 and conclude by May 9.
Investor’s Business Daily and AOL contributed to this report.
