GOOGL: Alphabet Stock Falls amid Pressure on Google to Spin Off Chrome Browser

Google might be forced to sell off its popular Chrome browser as a way to reduce its dominance in the market.

• Alphabet stock GOOGL sank Thursday after the Biden administration said it will require Google to spin off its widely popular Chrome web browser. Shares of the Google parent fell 4.7% as investors took a cautious stance despite the lack of immediate threat. The Department of Justice said in a court filing that Google should end its monopoly in online search after it had inflicted “decadelong harm” on competitors.
• Why isn’t that an immediate threat? One reason is that this is the Biden administration, which is due to get phased out as soon as Donald Trump takes office on January 20. But even if that court filing leads to Chrome getting sold off, it wouldn’t necessarily put a dent in Alphabet’s business. Chrome is valued at a price tag of around $20 billion — a grain of sand in Alphabet’s formidable market valuation of $2.2 trillion.
• What’s the next step? A trial is starting as soon as April next year. Judge Amit Mehta will oversee the trial that will decide the fate of the Chrome browser and also address the wider issue of Google’s purported illegal monopolization. Judge Mehta ruled in August that Google was acting as a “monopolist” and pledged to pursue legal action against it. Shares of the tech giant are up 21% so far this year.