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Google's digital ads empire faces potential breakup as antitrust remedy trial kicks off

1. DOJ proposes forced breakup of Google's AdX to enhance competition. 2. Google argues breakup risks damaging advertising technology platform. 3. Judge Brinkema to oversee hearings impacting Google's digital advertising monopoly. 4. Google plans to appeal ruling that identified multiple illegal monopolies. 5. Possible divestiture could significantly reshape Google's advertising landscape.

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Why Bearish?

The potential for a forced breakup signifies serious regulatory challenges. Historical examples, such as AT&T's breakup, show significant stock price drops during major divestitures.

How important is it?

The lawsuit directly threatens Google's core advertising business model, essential for revenue. Monitoring regulatory developments in this high-profile case is vital for GOOG investors.

Why Long Term?

The outcome of hearings could take time to unfold and influence Google’s market position for years. If forced changes are enacted, they impact strategic operations long-term.

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