The US Department of Justice (DOJ) is weighing the breakup of Google (NASDAQ:GOOGL), which would be the most significant potential dismantling of a monopoly since AT&T's breakup four decades ago.
Splitting up the business
In a court filing on Tuesday, the DOJ suggested separating Google’s core search business from its other key products, such as Android, Chrome and the Google Play app store.
CNN reports that the move comes after a federal judge ruled in August that Google violated US antitrust laws, labelling the company a "monopolist" in its search business.
The court’s ruling has set the stage for potential penalties that could reshape Google’s role in the tech landscape and alter how millions of Americans access information online.
The DOJ argued that Google had leveraged its control over multiple products and exclusive contracts to stifle competition in search, leaving consumers with limited alternatives.
Billion-dollar deals
A central issue in the case is Google's billion-dollar deals with companies like Apple (NASDAQ:AAPL), making Google the default search engine on smartphones and browsers.
The government is considering a ban on these exclusivity deals as one potential penalty.
In addition, the DOJ may require a 'choice screen' on devices, allowing users to select their preferred search engine, a practice already common in the European Union.
The case also highlighted concerns about Google’s ability to maintain its dominance through artificial intelligence, proposing measures to limit Google’s use of its monopoly power in AI development.
Google to appeal
Google, which plans to appeal the ruling, warned that the government's actions could have wide-reaching consequences for consumers, businesses and innovation, with the case expected to continue for months or even years.
The outcome of this case could have broader implications for other ongoing antitrust battles involving major tech giants such as Amazon (NASDAQ:AMZN), Apple and Meta.