WASHINGTON, D.C. – Following a recent court ruling that found Google in violation of antitrust law, the Justice Department is now looking to dismantle one of America’s most influential companies. This decision has caused shares of Google’s parent company, Alphabet, to drop over 5% on Thursday as prosecutors unveil proposed solutions that would drastically change how the search giant operates.

In September, U.S. District Judge Amit Mehta determined that Google had unlawfully monopolized the search market through significant payments to secure its position as the default search engine on various platforms. In response, the DOJ is pushing for an end to these practices, as well as a directive to prevent Google from automatically setting itself as the default search option on its Pixel smartphones. One of the most significant requests is for Google to divest its flagship Chrome browser.

Alphabet’s Class C shares took a hit, closing down 4.5% for the day and dropping even further during after-hours trading. Chief legal officer Kent Walker expressed concerns that the proposed remedies could compromise user security and privacy, in addition to hindering the company’s investments in artificial intelligence.

Despite the potential impact on Google’s finances, the ruling against the anticompetitive payments, referred to as “traffic acquisition costs,” could boost the company’s gross margins by eliminating $40 billion in expenses. Chrome, as the world’s leading web browser, plays a crucial role in fueling Google’s ad business, the primary revenue source. Additionally, it serves as a gateway for introducing consumers to Gemini, Google’s main AI offering.

However, executing a sale of Chrome could present challenges, as potential buyers capable of affording such a deal, like Amazon, are already under antitrust scrutiny. Regardless of the outcome Judge Mehta delivers in August 2025, Google intends to appeal the decision. The stance of the incoming administration, led by the President-elect, on the case remains uncertain as it originated during the previous administration and has continued through the transition.

This development has sparked discussions about the power dynamics within the tech industry and the impact of antitrust measures on major corporations, raising questions about competition, innovation, and consumer welfare in the digital age. The future implications of this case could reshape the landscape of big tech companies and the regulations governing their operations.