Department of Justice weighs potential breakup of Alphabet in antitrust case
Recently, the Department of Justice has been analyzing whether to break up Alphabet (NASDAQ: GOOGL) following an antitrust ruling alleging that the tech giant monopolized the search market.
Judge Amit Mehta’s ruling on August 5 found GOOGL guilty of dominating 90% of the search engine market, prompting the DoJ to weigh forcing Alphabet to divest from key ventures like Android, Chrome, and AdWords, potentially impacting the company significantly.
The latest trading session saw GOOGL shares close at $164.16, gaining 1.15% and continuing the 1.71% progress made in the previous five trading days.
However, news of a possible Alphabet breakup caused a negative reaction in the pre-market, with Alphabet stock losing 0.90% of its value.
Key levels to monitor for Alphabet stock price
GOOGL stock recently surpassed its closest resistance zone at $163.81, but if losses from pre-market trading persist, this zone must be reclaimed, as the $164.10 level no longer functions as support.
If losses continue, the next support level for Alphabet shares is at $154.92, previously established in April.
The latest Relative Strength Index (RSI) reading reveals sustained upward momentum for GOOGL stock, closing at 59.62 on August 13.
Impact of Alphabet antitrust case ruling on other companies
In addition to a potential divestment order for Alphabet, judges may mandate revenue sharing bans, impacting companies like Apple (NASDAQ: AAPL), Samsung, and Mozilla, which earn billions from setting Google as the default search engine on their devices and browsers.
Furthermore, Alphabet could be instructed to share its database or algorithms with competitors, enabling them to enhance and bridge the gap currently experienced with Google.
Hot Take: Potential implications for Alphabet following antitrust ruling
If the Department of Justice proceeds with breaking up Alphabet, the tech giant may need to divest from key ventures, impacting its market dominance and potentially reshaping the tech industry 🚀.
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