Justice Department considers breaking up Google after Antitrust ruling

The U.S. Justice Department is contemplating a historic move to break up Alphabet Inc.’s Google following a recent court ruling that found the tech giant guilty of monopolizing the online search market. This potential action represents the first major federal push to dismantle a company for antitrust violations since efforts to break up Microsoft Corp. failed two decades ago.

Sources familiar with the discussions have revealed that breaking up Google is one of several strategies being considered by the Justice Department. Other less severe measures include mandating Google to share more data with competitors and implementing restrictions to prevent it from leveraging its market dominance in artificial intelligence products. The deliberations are still ongoing, and the sources requested anonymity as they are discussing confidential matters.

Alphabet’s stock responded negatively to the news, dropping 3.8% at 10:13 a.m. in New York, marking the most significant decline since August 5, when a federal judge ruled that Google’s practices constituted an illegal monopoly in the search engine and search advertising markets.

The Justice Department’s potential actions could target key components of Google’s business. Among the most likely candidates for divestment are the Android operating system and Google Chrome, the company’s web browser. Additionally, there is discussion about potentially requiring the sale of AdWords, the platform used by Google to sell text-based advertisements.

The escalation of these discussions follows Judge Amit Mehta’s August 5 ruling, which declared that Google had engaged in illegal monopolistic practices. The ruling specifically addressed Google’s dominance in online search and search advertising, with Mehta’s decision paving the way for the second phase of the case. This next phase will involve the Justice Department’s proposals for restoring competitive balance in the market, including the possibility of a breakup.

Google has announced plans to appeal Mehta’s ruling, which could prolong the legal battle. In the meantime, both the Justice Department and Google will prepare for the next phase of the proceedings, which will focus on remedies to address the court’s findings and promote a more competitive environment in the digital marketplace. However, we do know that breaking up Google is not going to be easy and it could well be a historic decision.