The U.S. Department of Justice causes sharp losses for Google's stock today.. What are the details?

Shares of the giant American technology company Alphabet – the parent company of Google – witnessed a sharp decline of over 6.5% during today's trading for both Class "A" and "B" shares, which caused significant losses to the Nasdaq 100 technology index, due to the high weight of Google stocks in the index.

The losses of Google’s shares today come after the U.S. Department of Justice requested that the U.S. judiciary issue an order for Google to sell its popular web browser, Google Chrome, in order to prevent monopolistic practices in the web search industry.

The Department of Justice's request follows its recent allegations that Google's payments to Apple to secure its position as the default search engine violate antitrust laws. The department also claimed that Google’s control over the world’s most widely used smartphone operating system, Android, gives it an unfair additional advantage.

Officials from the U.S. Department of Justice stated that Google’s control and behavior create an unfair competitive environment and heavily lean towards being monopolistic conduct, emphasizing that Google’s success primarily depends on what the department described as "illegitimate gains."

The parent company, Alphabet, strongly opposed the Department of Justice's stance towards Google, warning that such a move could harm consumers and undermine American technological leadership on the global stage, especially as this step increases a broader regulatory wave against the dominant American technology sector.

While the Chrome browser itself does not generate significant direct revenue for Google, it plays a crucial role in attracting users to Google's broader ecosystem, where it can generate substantial income for the company through advertising, data collection, and strategic partnerships.

It is worth noting that the forced sale of the Chrome browser would not only disrupt Google’s business model but would also affect the overall image of Google after the broader allegations by the Department of Justice against Google have already raised concerns among investors.

The federal court overseeing the case has set a two-week hearing for April next year, during which the details of how Alphabet alters its practices will be examined, with a final decision expected in 2025, which could reshape the future of one of the most influential tech companies in the world.

The uncertainty regarding the move by the U.S. Department of Justice has sent significant waves of caution and concern through the stock market, as analysts warn that a positive ruling in favor of the Department of Justice's request could have dire and lasting consequences for Google, leading to substantial losses for Google’s stocks today.

In terms of trading, Google Class A shares (NASDAQ: GOOGL) fell by 6.7% to record $163.90, while Google Class B shares dropped by 6.5% to record $16.43 during the trading session on Wall Street.