Alphabet Inc. (GOOG) Stock: Antitrust Pressure Mounts as Remedies Trial Set for September
By: coin central|2025/05/04 19:15:01
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TLDRGOOG closed at $165.81 on May 2, up 1.86%A U.S. judge ruled Google illegally monopolized online ad marketsRemedies trial in ad tech case set for Sept. 22DOJ pushing for divestiture; Google says remedy proposal sufficesGOOG lags S&P 500 YTD, down 12.83% vs. S&P’s 3.31% dropAlphabet Inc. (NASDAQ: GOOG) shares closed at $165.81 on May 2, up 1.86%, even as legal clouds darken. A federal court has set Sept. 22 as the start date for the U.S. government’s remedies trial, aiming to break up Google’s advertising technology dominance.This follows Judge Leonie Brinkema’s ruling last month that Google willfully maintained monopoly power by tying its ad server and exchange, stifling competition between ad buyers and sellers.Alphabet Inc. (GOOG) Landmark Antitrust Case Puts Ad Business at RiskThis case marks the biggest legal threat to Google’s core business since Microsoft’s antitrust battle two decades ago. Judge Brinkema found that Google had illegally entrenched its monopoly in digital ad markets through restrictive contracts and technological integration. The DOJ now seeks remedies that could include forcing Google to divest key ad tech tools, a move Alphabet claims is excessive and harmful to the market.Google adtech remedy trial to begin Sep. 22. Duration TBD. Judge Brinkema was going to move the pretrial deadlines up but after hearing DOJ & Google arguments on divestiture and behavioral remedies, she adopted parties proposed schedule. pic.twitter.com/BRsQxSRxNn— Khushita Vasant (@KhushitaVasant) May 2, 2025Alphabet argues its proposed remedy already addresses the court’s findings. “The DOJ’s additional proposals go well beyond the Court’s findings,” said Google VP Lee-Anne Mulholland.Broader Antitrust Pressure and Competition in AIThis latest action follows another major ruling last August, where a D.C. court found Google monopolized internet search. As Alphabet prepares for its advertising remedies trial, it’s also battling rising AI-driven search competition from OpenAI, Anthropic, and Perplexity, threatening its dominant search business.Despite these pressures, Alphabet maintains strong long-term stock performance. Its 3-year return stands at 42.2%, outpacing the S&P 500’s 36.85%. Over 5 years, Alphabet has gained 152.3%, well ahead of the broader market’s 100.89% rise.Stock Underperforms in 2025 as Legal Risks WeighYet, the legal overhang has weighed on 2025 performance. Alphabet stock is down 12.83% year-to-date, underperforming the S&P 500’s 3.31% drop. While Alphabet offers a modest 0.51% dividend yield, investors remain cautious ahead of the remedies trial.With earnings due between July 21-25 and an ex-dividend date set for June 9, Alphabet’s near-term stock direction may hinge on its legal battles and whether regulators force structural changes to its lucrative ad tech empire.The post Alphabet Inc. (GOOG) Stock: Antitrust Pressure Mounts as Remedies Trial Set for September appeared first on CoinCentral.
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