The US Justice Department told a federal judge it is considering recommending that Google be forced to sell off parts of its operations to alleviate the harm caused by its monopolization of the online search market, in what would be a historic antitrust breakup.
Alphabet shares dropped more than 2% in morning trading.
In a court filing Tuesday, antitrust enforcers said Judge Amit Mehta could also force the Alphabet Inc. unit to provide access to the underlying data it uses to build its search results and artificial intelligence products.
The Justice Department “is considering behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features — including emerging search access points and features, such as artificial intelligence — over rivals or new entrants,” the agency said in the filing.
The filing represents Washington’s first push to dismantle a company for illegal monopolization since unsuccessful efforts to break up Microsoft Corp. two decades ago. The 32-page filing lays outs a framework of potential options for the judge to consider as the case moves to the remedy phase.
Antitrust enforcers said Google gained scale and data benefits from its illegal distribution agreements with other tech companies that made make its search engine the default option on smartphones and web browsers.
Mehta, who ruled this summer that Google broke antitrust laws in both online search and search text ads markets, plans to hold a trial on the proposed remedy next spring and issue a decision by August 2025. Google has already said it plans to appeal Mehta’s decision, but must wait until he finalizes a remedy before doing so.
Google’s Android business encompasses the operating system used on smartphones and devices as well as apps.
On Monday, a different federal judge ordered Google to open up its app store for the next three years to resolve a separate antitrust case related to its dominance of app distribution on Android smartphones. The company also plans to appeal that decision.