Alphabet(GOOG) The Motley Fool·2025-04-19 07:48Core Viewpoint - The Justice Department has filed multiple antitrust lawsuits against Google, alleging illegal monopolistic practices in both online search and ad tech software, with federal judges ruling against Google in both cases [1][3][6]. Group 1: Antitrust Lawsuits - In 2020, the Justice Department accused Google of operating an illegal monopoly in online search, claiming it entered into exclusionary agreements that restrict access to search engines [3][4]. - A federal judge ruled in August 2024 that Google engaged in illegal practices to maintain its monopoly in the internet search market, with proposed remedies including limiting Google's ability to pay for default search placements [4][5]. - In April 2025, another ruling found Google had an illegal monopoly in ad tech software, with allegations of anticompetitive conduct aimed at neutralizing competitors [6][8]. Group 2: Financial Implications - Despite the ongoing legal challenges, Wall Street estimates that Alphabet's earnings will grow at an annual rate of 12% through 2026, making its current valuation of 19 times earnings appear reasonable [10][11]. - Alphabet has consistently beaten consensus earnings estimates by 8% over the last six quarters, indicating strong financial performance despite legal uncertainties [11]. Group 3: Market Position and Risks - Google reportedly paid Apple $20 billion in 2022 to remain the default search engine in Safari, highlighting the financial stakes involved for both Google and its partners [3]. - Historical trends suggest that breakups resulting from antitrust lawsuits are unlikely, as seen in past cases like Microsoft in 2001 [10].