DOJ Targets Google’s Chrome Browser

FINANCE
DOJ Targets Google’s Chrome Browser

Google’s parent company, Alphabet, saw its stock drop over 5% Thursday after the Department of Justice (DOJ) proposed dramatic remedies following a September antitrust ruling. U.S. District Judge Amit Mehta previously determined Google had monopolized the search market by paying billions to secure its position as the default search engine on smartphones and browsers. The DOJ now seeks to prevent such payments, bar Google from making its search engine default on Pixel devices, and force the sale of its Chrome browser.

Alphabet’s Class C shares fell 4.5% during regular trading and declined further after hours. Chief Legal Officer Kent Walker criticized the DOJ’s proposals, calling them "unprecedented overreach" that would harm consumers and hinder technological innovation.

While eliminating $40 billion in annual “traffic acquisition costs” could improve gross margins, losing Chrome—integral to Google’s ad and AI businesses—could significantly impact revenue. Chrome also helps introduce users to Google’s AI product, Gemini.

A potential sale of Chrome would be challenging, as most prospective buyers, like Amazon, face antitrust scrutiny themselves. With a final ruling expected in August 2025, Google plans to appeal, though the case’s future may hinge on the incoming Trump administration’s stance on antitrust enforcement.
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FINANCE
Northvolt Bankruptcy Hits Europe’s EV Plans

Swedish battery giant Northvolt has filed for Chapter 11 bankruptcy protection in the U.S., marking a significant blow to Europe’s electric vehicle (EV) ambitions. Once considered Europe’s leading hope for homegrown EV battery production, the company announced the restructuring move to address financial challenges, scale back operations, and secure a more sustainable future.

Northvolt emphasized that its flagship gigafactory in Skellefteå, Sweden, will remain operational during the restructuring, which is expected to conclude in early 2025. Interim board chairman Tom Johnstone described the decision as a step to strengthen the company’s capital structure, ensuring it can meet growing market demand for vehicle electrification.

The restructuring aims to unlock $245 million in new financing, including $145 million in cash and $100 million in debtor-in-possession loans. This follows Northvolt’s recent cost-cutting measures, including a 20% reduction in its global workforce.

Despite its challenges, Northvolt remains committed to its mission of establishing a Western industrial base for EV battery production.
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CRYPTO
Bitcoin Nears $100K After Gensler Exit

Bitcoin is on the brink of $100,000, breaking records just weeks after surpassing $80,000. This surge reflects growing investor optimism following Donald Trump’s election victory and expectations of crypto-friendly policies under a Republican Congress. Since election night, the crypto market has gained over $1 trillion in value.

On Thursday, Bitcoin hit an all-time high of $98,831, coinciding with the announcement that SEC Chair Gary Gensler will step down when Trump takes office in January. Gensler, known for his aggressive anti-crypto stance during the Biden administration, faced widespread criticism from the industry. His resignation sparked celebration among crypto advocates, who see this as a turning point.

Analysts predict Bitcoin will reach six figures by year-end. Adam McCarthy of Kaiko noted that continued ETF inflows could cement Bitcoin as a legitimate store of value. Meanwhile, reports suggest Trump may establish a White House crypto policy role, granting the industry unprecedented influence over future regulations.
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Word of the day
Beatific

That blissful grin on your face? It could be described as beatific, meaning it projects a peaceful sense of joy.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.