💡 Google and possible split! 🌐
The U.S. Justice Department is about to take a step that could rewrite the history of the tech industry - it's considering splitting the company Google $GOOGL, one of the world's biggest players. 🌍 This intervention, if implemented, could change not only the future of Google, but also the rules of the game for the entire tech sector. And that means one thing: watching the situation very closely and preparing for potential shocks and opportunities. 💡
The Attorney General has announced that the adoption of the so-called "antitrust rules" is at stake in the ongoing antitrust proceedings. In the context of the antitrust proceedings, "structural measures" are at stake, aimed at curbing Google'smonopoly position in internet search. 🔎 Google would no longer be able to favour its own products such as Chrome, Android or the Play Store, which would have a major impact on the way tech firms build their ecosystems.
📆 Key investor data:
The Department of Justice plans to submit its specific proposals to the November 20, with Google Google will get to 20 December to respond and present their own solutions. If the proposed measures are adopted, we can expect to see an impact on stock markets, especially for the technology giants. 📉
💬 Google's response
Google's Vice President of Regulatory Affairs Lee-Anne Mulholland has already warned that the proposed changes could seriously harm U.S. businesses and consumers. According to her "government overreach".
🔮 What does this mean for the tech sector?
Discussion of a possible split Google are just the tip of the iceberg. US authorities are pursuing similar antitrust lawsuits against other tech giants such as Meta, Amazon and Apple. 🔗 These firms are facing allegations of anti-competitive practices, meaning the entire sector is under the microscope of regulators. If there are significant restrictions on these companies, we could see new players entering the market or interesting buying opportunities.
What do you think of the current developments around Alphabet? $GOOGL?
Do you think it's right for regulators to interfere in this way?
I don't like this at all, but I hope it doesn't happen. It would be a big mistake for them to allow it to happen.
If this passes I will see it as a failure of the regulators (who allowed all the acquisitions) and actually where this most capitalist country is going. I see the likelihood of Alphabet breaking up as very low, more likely they are making ground for fines to replace their tax optimization. In reality, they need these powerful companies to pull their service economy and improve their tragic fiscal situation.
I'm against it. Unless the society is doing explicitly illegal things that are not acceptable, I don't like these interventions. You spend your whole life building a company, get to the top, and then have it downsized or taken away. That's nonsense.