Tech breakup ‘highly unlikely’ Despite Google’s DOJ antitrust backlash, Wedbush’s Dan Ives says, but expect ‘business model adjustments’ – Alphabet (NASDAQ:GOOG) , Alphabet (NASDAQ:GOOGL)

Despite the Department of Justice’s (DOJ) recent antitrust victory. Alphabet Inc Google GOOGLE Google, of Wedbush Dan Ives predicted that a breakup of the big tech companies is “highly unlikely.”

What happened: Ives, in a note to investors seen by Benzinga, said that despite the DOJ’s recent antitrust win against Google, the likelihood of big tech firms being dissolved is low. The analyst acknowledged that while regulatory scrutiny of Big Tech is increasing, the dismantling of these companies’ business models is “highly unlikely going forward.”

This comes on the heels of a US District Court ruling that found Google monopolized to maintain its search engine dominance. Bloomberg reported that the DOJ could consider a breakup of Google as a possible solution.

See also: Kamala Harris’ campaign criticizes Elon Musk’s interview with the former president: “He’s using the bought platform

Ives referred to the DOJ’s victory as “a huge notch on the belt” for regulators and predicted increased attention on other tech giants such as Apple Inc., Amazon.com Inc.and Meta Platforms Inc. However, he anticipates that Big Tech’s business models will remain “relatively isolated for now.”

The analyst expects “adjustments to the business model and more intense scrutiny of mergers and acquisitions” rather than outright break-ups. The Wedbush note also pointed out that legal battles could drag on for years, with Google already planning to appeal the recent ruling.

Google did not immediately respond to questions from Benzinga.

Why it matters: The DOJ’s consideration of a breakup offer for Google would be the first attempt to break up a company for monopolization, since a similar, unsuccessful attempt was made with Microsoft more than two decades ago.

Adding to Google’s woes, the company’s AI assistant Gemini experienced two back-to-back issues during a live demo at the “Made by Google” event. That incident highlighted potential problems with Google’s product offerings, further complicating the company’s position amid ongoing antitrust scrutiny.

Read on:

Disclaimer: This content was produced in part with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image via Shutterstock