**Big Tech Faces Regulatory Hurdles, But Market Impact Remains Slim**

Google, a subsidiary of Alphabet, is currently under scrutiny by the Department of Justice (DOJ) as part of a broader wave of regulatory challenges facing major tech companies. Brad Erickson, an equity analyst at RBC Capital Markets, recently discussed the implications of this regulatory landscape on investment strategies, focusing on the minimal impact anticipated from these challenges.

The DOJ is in the process of drafting a proposal for a judge in the ongoing default search case. This proposal aims to address Google's method of securing its status as the default search engine on smartphones. The department has a deadline until December to finalize this proposal, with a ruling expected by August 2025. However, Google plans to appeal, potentially extending this legal conflict for several years. Despite the ongoing litigation, Erickson suggests that Google's business operations are unlikely to experience any major disruptions, maintaining the company's stock as an attractive investment option.

Erickson also shed light on the extensive regulatory scrutiny across the tech sector, encompassing giants such as Amazon and Meta alongside Google. He notes that the complexity and advancement of these companies' technologies make it difficult to significantly alter their business models through regulatory means. He argues that the intricate and deeply ingrained systems powering these tech giants are beyond the point of being easily unwound, hence limiting the potential for regulatory actions to impact their overall business trajectories.