On October 9, 2024, Alphabet's Google learned that the U.S. Justice Department may soon ask a judge to split up the company to limit its hold over online searches. This potential action follows a court order issued earlier in the week to open up its app store, Play, to rivals.
The U.S. Department of Justice's proposed remedies to break up Google's search dominance could weaken its main profit engine. Such a move also threatens to stall its advances in artificial intelligence, according to analysts.
While a final outcome may be years away, the prospect of a forced breakup represents a material challenge to Alphabet's core business model and its strategic 'AI-first' imperative.
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