Shares in Alphabet’s Google (NYSE:GOOG) slipped on Wednesday after the Department of Justice (DOJ) threatened a breakup of the company.
GOOG – Daily Chart
GOOG shares have found resistance at the $170.53 level and price has also breached support from a previous gap open. The support for the beginning of that move is around $157.91 with larger support below at $148-150.
The technology giant could face restrictions on many of its biggest products, including its Chrome browser, Play Store, and Android OS, the US DOJ said. The news comes after a judge in August said the company had broken antitrust laws to dominate online searches.
Officials have now delivered a series of proposals to dismantle the company’s monopoly in a court filing. The plans include stopping Google from paying other tech firms to have its search engine pre-installed on their products.
Google paid more than $26bn in 2021 to companies such as Apple to make Chrome a default search option.
A DOJ spokesperson said: “Fully remedying these harms requires not only ending Google’s control of distribution today, but also ensuring Google cannot control the distribution of tomorrow”.
Google said the court filing was another stage in a “long process” and confirmed it would appeal.
Lee-Anne Mulholland, the company’s VP of regulatory affairs, said the “radical changes” proposed were too big and said the US government had a “sweeping agenda that will impact numerous industries and products”.
The crackdown on Google may affect its advertising revenue and will also impact other firms that received payments to make Google’s products a priority feature.
