Analyst: The US Department of Justice's proposal to break up Google hits the nail on the head, but the chances of success are slim

Zhitong
2024.10.10 11:39

Analysts recently stated that the U.S. Department of Justice's proposal to break up Alphabet Inc. (Google) could weaken Google's main profit engine and hinder its progress in the field of AI, although the final outcome may still take several years. Adam Kovacevich, CEO and founder of the industry organization Chamber of Progress representing tech companies, believes that the U.S. Department of Justice has put forward remedies, but it remains to be seen whether they will succeed. Kovacevich said, "This may become some headlines, but it may not necessarily succeed. The Department of Justice is rolling out remedies that go far beyond the scope of a judge's ruling, and history tells us that these broad remedies do not survive the appeals process." Russ Mould, Investment Director at AJ Bell, also noted that this risk has long been known. He said, "Investors don't seem to believe that this forced breakup will actually happen." Dan Ives, an analyst at Wedbush Securities, stated, "Regarding the final outcome of this case, we still believe that Google is unlikely to undergo structural changes. Additionally, any significant impact on the business model will be related to search distribution."