Alphabet Inc. (Google) is facing increased scrutiny as the U.S. Department of Justice (DoJ) antitrust trial progresses in 2025. The trial's outcome is poised to significantly influence Alphabet's valuation and future trajectory.
The DoJ alleges that Google has unlawfully maintained monopolies in search and digital advertising. The second phase of the trial, focusing on remedies, commenced in April 2025, with senior officials from ChatGPT and Google's Gemini app expected to testify. The Justice Department is proposing significant changes to Google's business practices, including the potential divestiture of key products like Google Chrome and Android. Google, on the other hand, suggests opening default search engine deals to other companies.
The situation is further complicated by the possibility of the DOJ seeking to prevent Google from leveraging its search dominance to favor its AI products, including Gemini. Some analysts predict that Alphabet's stock could still perform well, citing the company's strong position in digital advertising and investments in AI. However, the uncertainty surrounding the antitrust trial's outcome could continue to exert downward pressure on the stock in the near term.