The English translation of the heading is: "US Department of Justice considers breaking up Google units: Tensions in the technology sector are increasing.

  • The possible breakup of Google's units could have significant financial impacts on Alphabet and technology markets.
  • The US Department of Justice Considers Antitrust Actions Against Google to Prevent Monopolies.

Eulerpool News·

The U.S. Department of Justice announced on Tuesday evening that it might consider breaking up Google's units, such as the Chrome browser and Android operating system. This news had immediate impacts on the technology sector: The leveraged T-Rex 2X Long Alphabet Daily Target ETF dropped by 4% by Wednesday afternoon, while broader technology ETFs like the Technology Select Sector SPDR Fund ETF rose by nearly 1%, buoyed by strength in the semiconductor sector. With this groundbreaking antitrust action, the Department of Justice aims to prevent and limit the maintenance of monopolistic positions. Considered measures include contractual requirements and prohibitions, non-discrimination requirements for products, as well as data and interoperability requirements. Structural requirements are also on the agenda. Specifically, behavioral and structural measures are being considered to prevent Google from favoring its products like Chrome, Play, and Android to prioritize Google Search and related features. These measures are part of efforts to protect new market entries and competition, particularly in the field of artificial intelligence. The Department of Justice's recommendations follow a ruling in August that found Google had established an illegal monopoly. The case revolves around allegations that Google abused its dominance in the search engine and online advertising sectors. Nearly half of Alphabet's revenue comes from Google Search. In the second quarter of 2024, Alphabet's revenues amounted to nearly 85 billion USD, with more than 42 billion generated from search and related services alone. Given the financial significance of Google Search for Alphabet, structural changes could have substantial financial impacts. Pressure on Alphabet's GOOG and GOOGL stocks might increase, while competitors like Apple and technology-focused ETFs could also experience fluctuations.
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