Alphabet's Antitrust Woes: Chrome Divestiture and Search Data Sharing Loom

According to the latest analysis, Alphabet Inc., the parent company of internet giant Google, is facing a critical juncture as it navigates potential antitrust remedies proposed by the U.S. Department of Justice (DoJ).

As of August 14, 2025, BofA Securities analyst Justin Post has reiterated a Buy rating on Alphabet's stock, but with a cautious outlook on the potential impact of the DoJ's remedy requests. The analyst highlights three key aspects that could significantly affect Alphabet's operations: 1) the possibility of a Chrome divestiture, 2) changes to Google's traffic acquisition cost (TAC) payments for default placement, and 3) new search data sharing requirements.

The potential structural remedy of a Chrome divestiture, while rare in U.S. precedent, would be highly disruptive to Alphabet's ecosystem, reducing synergies and scale advantages across the company's various businesses. On the behavioral front, the analyst expects the market to anticipate the elimination of exclusive search deals and the implementation of choice screens, which could impact Google's search query share and incentivize mobile device manufacturers to explore partnerships with AI competitors.

Furthermore, the analyst suggests that new data sharing requirements could dilute Google's data advantage, undermining the company's differentiated ad stack and intensifying competition in the search market. This could pose a significant challenge to Alphabet's core business model and long-term competitiveness.

As Alphabet navigates these potential regulatory hurdles, the company's ability to adapt and maintain its market dominance will be closely watched by investors and industry observers alike.