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Google Pushes Back Against U.S. Government’s Antitrust Efforts

Alphabet’s Google has urged the U.S. government to reconsider efforts to break up the tech giant, meeting with officials from President Donald Trump’s administration last week, according to a source familiar with the matter.

The U.S. Department of Justice (DOJ) is currently pursuing two antitrust lawsuits against Google, focusing on its dominance in online search and advertising technology. The agency has outlined potential remedies, including forcing Google to divest key assets such as the Chrome web browser and ending agreements that make it the default search engine on devices like Apple’s iPhone.

A Google spokesperson confirmed that the company regularly engages with regulators, including the DOJ, to discuss ongoing legal matters. “As we’ve publicly stated, we are concerned that the current proposals would harm the American economy and national security,” the spokesperson said.

The DOJ has not yet commented on the recent meeting. The trial to determine potential remedies in the search case is scheduled for April, with a final ruling expected by August.

President Trump’s administration is expected to take a less aggressive stance on antitrust enforcement compared to former President Joe Biden’s policies. Industry experts suggest that this could include a softened approach toward breaking up Google, a move that has been a key concern for the tech giant.

Reddit Misses Daily Visitor Estimates Due to Google Algorithm Change, Shares Drop

Reddit (RDDT.N) fell short of market expectations for daily active unique visitors in the fourth quarter, impacted by a change in Google’s search algorithm that reduced its visibility in search results. This announcement sent Reddit’s shares tumbling 15% in after-hours trading on Wednesday.

The San Francisco-based company, which launched its IPO in March 2024, saw its stock surge nearly five-fold last year. However, volatility with Google search at the end of the fourth quarter affected traffic from “logged-out users”—those who browse without signing in, CEO Steve Huffman said in a letter to shareholders. Despite the setback, Huffman noted that traffic from Google search has since recovered in the first quarter of 2025.

Reddit’s daily active unique visitors grew by 39% to 101.7 million for the quarter ending December 31, but this fell short of analysts’ average estimate of 103.3 million, according to LSEG data. Growth has also slowed sequentially.

“Reddit shares are down due to missed expectations on daily active users, but it’s not a reason to lose faith in the company,” said Jeremy Goldman, senior director of briefings at eMarketer. He added that Reddit’s international expansion and AI advancements could help it become a digital advertising powerhouse.

Reddit has been leveraging AI deals with Alphabet’s Google and Microsoft-backed OpenAI, as well as conversation placement ads—where brands can advertise directly within subreddit discussions. These factors have helped Reddit forecast first-quarter revenue between $360 million and $370 million, surpassing analysts’ average estimate of $358.1 million.

The company reported fourth-quarter revenue of $427.7 million, beating the $405.3 million estimate, largely driven by holiday season ad spending. Profit per share came in at 36 cents, surpassing the 25-cent estimate. Reddit’s global average revenue per user increased by 23% to $4.21.

Additionally, Huffman mentioned ongoing discussions for data licensing deals with major industry players.

Google has yet to respond to inquiries about its algorithm changes.

Brazil Denies Report of Tax on US Tech Firms Amid Trump Steel Tariffs

Brazil’s Finance Minister, Fernando Haddad, denied reports on Monday suggesting that the country was considering imposing taxes on U.S. tech companies in response to President Donald Trump’s proposed 25% tariff on all U.S. steel imports.

The speculation arose after a report from the Brazilian newspaper Folha de S.Paulo, which claimed that the administration of President Luiz Inácio Lula da Silva was contemplating levying tariffs on major tech firms as a retaliatory measure.

Haddad quickly refuted the claims on social media, emphasizing that the information was inaccurate. He reiterated that the Brazilian government would only make official statements based on concrete decisions, not speculative announcements that could be misinterpreted or later changed.

The report had suggested that tech giants such as Amazon (AMZN.O), Meta Platforms (META.O), and Alphabet (GOOGL.O) could be targeted by such a tax. However, Haddad’s remarks clarified that no such plans were under consideration at this time.

Brazil, a significant supplier of U.S. steel imports, also serves as a key market for many large tech companies, which would have been affected by such a tax. The denial comes as Trump is set to introduce additional tariffs on steel and aluminum imports, escalating his trade policy strategy.