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Alphabet Inc. (NASDAQ: GOOG, GOOGL) will retain its Chrome browser and Android operating system following a federal court ruling on October 2, 2023, regarding its monopoly status in the search engine market. Although deemed a monopoly, the court opted not to impose severe remedies, mainly due to the rise of competitive forces in artificial intelligence, which continues to affect Google’s market dominance.
The ruling allows Alphabet to maintain its lucrative search engine operations, which generated over $50 billion in quarterly revenue last year, reflecting a 12% year-over-year growth. The company is also focusing on artificial intelligence to counter competitors like OpenAI and its rapidly growing ChatGPT platform, which is nearing 1 billion users.
Alphabet’s cloud revenue grew 32% year-over-year last quarter, contributing to almost 10% of its consolidated earnings. Despite challenges, Alphabet’s shares recently hit all-time highs, with a price-to-earnings ratio of 25, suggesting ongoing growth potential against the backdrop of intensified AI competition.
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