Google's Unyielding Strength: Between AI Innovation and Regulatory Hurdles

Google, the undisputed giant of the internet industry, demonstrates its resilience even amid significant changes. The company is currently navigating a critical phase of transition towards artificial intelligence, while simultaneously facing regulatory challenges that threaten its dominance. The recent quarterly figures of Google's parent company Alphabet, released on Tuesday, impressively underscore the ongoing success. Both the profit and revenue significantly surpassed industry analysts' expectations. Compared to the previous year, profit rose by a remarkable 34% to $26.3 billion, equivalent to $2.12 per share. Revenue increased by an impressive 15% to $88.27 billion. This financial upswing would have been even more pronounced if Google were not simultaneously investing massively in expanding its AI capabilities. These investments are the main reason for the 62% increase in capital expenditures to $13.1 billion in the last quarter. The technological race includes competitors like Microsoft, Amazon, Apple, Meta Platforms—the parent of Facebook—and the rising star OpenAI. Investors were pleased with these results, reflected in a nearly 4% increase in Alphabet’s stock price in after-hours trading. Nevertheless, a looming threat hangs over Google: a four-year-long antitrust case from the U.S. Department of Justice casts a shadow on the company's future prospects. After presenting evidence in a high-profile trial last year, a federal judge found Google's search engine to be an illegal monopoly. This opened the door for potentially drastic measures. The Justice Department is now considering breaking up the company, a decision that is expected to be made by Judge Amit Mehta by next summer. In addition to legal challenges, Google must also address obstacles related to its Play Store for Android apps, which has also been seen as an illegal monopoly. Another antitrust case in Virginia, dealing with the technology behind Google’s digital advertising network, is nearing its end. Despite all these challenges, Google remains a financial powerhouse. Alphabet CEO Sundar Pichai summarized: "The momentum across the company is extraordinary.