The Justice Department said it is considering whether to ask a federal judge to order the breakup of Google’s Internet search monopoly — a move that could upend the Big Tech firm’s entire business model.
The feds pointed to a forced stripping of Google’s Chrome browser, the Google Play app store or its Android operating system as among “potential behavioral and structural remedies” to address the company’s “unlawful conduct.”
“Full mitigation of these damages requires not only ending Google’s control of distribution today, but also ensuring that Google cannot control tomorrow’s distribution,” the DOJ said in a filing late Tuesday.
Shares of Google parent Alphabet fell nearly 2% in early trading on Wednesday.
Judge Amit Mehta ruled in August that Google built a search monopoly by making billions of dollars in payments to avoid competition and other illegal tactics.
He is expected to make a final decision on legal remedies to address Google’s behavior by next summer.
The DOJ also indicated the possibility of requiring Google to share data, indexes and relevant search patterns with its rivals to ensure a level playing field. The federations said they would offer a more comprehensive proposal for Mehta’s review in November.
The rise of artificial intelligence marked an “emerging obstacle to competition and risks further strengthening Google’s dominance” – and any settlement ordered by the judge must address its impact on the market, the agency added.
A forced sale is one of several options Mehta is expected to consider before making his final decision.
The judge could also force Google to stop paying smartphone makers like Apple and carriers like AT&T to ensure its search engine is installed by default on most devices.
DOJ lawyers focused on these payments throughout the trial.
Google, which has vowed to appeal Mehta’s initial ruling, described the DOJ’s legal framework as “radical” and claimed the proposals go “well beyond the specific legal issues in this case”.
“The devolution of government into a fast-moving industry could have unintended negative consequences for American innovation and American consumers,” Google’s vice president of regulatory affairs Lee-Anne Mulholland said in a blog post. “We look forward to making our case in court.”
Rival search engine DuckDuckGo — whose founder Gabriel Weinberg was among the most high-profile witnesses to testify against Google at trial — praised the DOJ’s proposal.
“Anchored by the court’s ruling, this proposal smartly aims to break Google’s illegal hold on the overall search market now and usher in a new era of sustainable competition moving forward,” said Kamyl Bazbaz, senior vice president of DuckDuckGo on public affairs.
Google is in the midst of an unprecedented regulatory crackdown as multiple antitrust cases target different parts of its business.
Earlier this week, US District Judge James Donato ruled that Google must open its lucrative Play Store to rivals. His decision came months after Google suffered a stunning loss in an antitrust case brought by “Fortnite” maker Epic Games.
Google also faces a separate DOJ case targeting its alleged monopoly over digital ad technology. Closing arguments in that trial are scheduled for next month.
Some Wall Street analysts have already started issuing warnings about a possible breakup of Google as a significant drag on its business in the months and years ahead.
Google CEO Sundar Pichai recently admitted that the company’s legal battle is likely to drag on for years.
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