Alphabet’s parent company, Alphabet Inc., filed its final legal plea on November 21, 2025, in the U.S. District Court for the District of Columbia, seeking to keep its advertising technology business intact in the face of a Department of Justice (DOJ) antitrust lawsuit that alleges the company operates illegal monopolies in the digital advertising market.
In the plea, Alphabet argues that a breakup would disrupt the seamless delivery of advertising services across its core platforms—Google Search, YouTube, and Google Cloud—by severing the tightly integrated data and technology stack that powers real‑time bidding, audience targeting, and measurement. The company contends that the integrated ecosystem is essential for maintaining the efficiency and innovation that have driven its advertising revenue for decades, and that a forced split would harm both advertisers and publishers by creating fragmentation and higher transaction costs.
The plea comes at a time when Alphabet has just reported record Q3 2025 results. Revenue reached $102.3 billion, a 16% year‑over‑year increase, while earnings per share climbed to $2.87, beating analyst expectations of $2.26 by $0.61 (a 27% beat). Operating income rose 9% to $31.2 billion, and the operating margin expanded to 30.5%, driven largely by a 34% jump in Google Cloud revenue to $15.2 billion and a 15% increase in YouTube advertising revenue. Alphabet’s CEO Sundar Pichai highlighted the role of AI in sustaining growth, noting that “AI is driving substantial business results,” while CFO Ruth Porat emphasized that operating margin benefited from strong revenue growth and continued efficiencies.
Market reaction to the plea and the Q3 earnings was markedly positive. Analysts upgraded Alphabet’s rating to “Buy” and raised price targets, citing the company’s dominant market position, the momentum in its AI‑powered cloud services, and the resilience of its advertising business. The stock reached all‑time highs on the day of the final court arguments, reflecting investor confidence in Alphabet’s ability to navigate regulatory scrutiny while maintaining robust financial performance.
The DOJ’s case remains a significant risk, but Alphabet’s integrated ad‑tech model and its recent financial strength suggest that the company is well positioned to defend its structure. A breakup would likely require the company to divest key assets such as AdX and Google Ad Manager, which could erode its competitive advantage and reduce economies of scale. Alphabet’s leadership signals that it will appeal any adverse ruling, underscoring its commitment to preserving the current business architecture while continuing to invest in AI and cloud growth.
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