Watch: US Government Considers Breaking Up Google

For the first time since AT&T was broken up into regional companies four decades ago, the U.S. government is considering dismantling one of the world’s largest monopolies: Google.

On Tuesday, the U.S. Department of Justice (DOJ) filed a court document stating it may recommend splitting up Google’s core businesses, potentially separating its search operations from its other products like Android, Chrome, and the Google Play Store. This move, according to the DOJ, would stop Google from leveraging these products to give its search engine an unfair advantage, particularly as new technologies like artificial intelligence emerge.

The DOJ’s recommendation comes after a federal judge ruled in August that Google violated U.S. antitrust laws with its search business, labeling the company a “monopolist.” This ruling set the stage for significant changes to Google’s operations and how Americans access information online.

In response, Google called the potential plan “radical,” arguing it would negatively impact the user experience by potentially “breaking” Android and Chrome, hindering AI development, and forcing the company to share personal data with competitors, risking privacy.

“This case is about a set of search distribution contracts,” Google said in a blog post. “Instead of focusing on that, the government seems to be pursuing a broader agenda that could disrupt multiple industries and products, with serious unintended consequences for consumers, businesses, and U.S. competitiveness.”

Following the news, Google’s stock briefly dipped by 1.9% before recovering slightly.

The government argued that Google’s practices, particularly its exclusive contracts with tech companies like Apple, left competitors sidelined and limited consumer choices in the search engine market. These deals, which made Google the default search engine on smartphones and web browsers, were deemed anticompetitive by U.S. District Judge Amit Mehta.

With the court ruling that Google violated the law, the next step is determining the penalties, which could take months or years, especially as Google has vowed to appeal. Among the potential penalties is a ban on Google’s exclusive contracts, which could lead to significant changes for smartphone users, possibly ending Google’s long-standing agreement with Apple.

Additionally, the DOJ may seek the implementation of “choice screens” on devices, allowing users to select their preferred search engine from the outset rather than defaulting to Google or Apple’s choice. Such screens are already used in markets like the European Union.

The DOJ is also considering restrictions to prevent Google from promoting its search engine through other Google-owned products, like Chrome. This practice, known as self-preferencing, has increasingly drawn scrutiny from U.S. regulators and policymakers.

The government also raised concerns about Google’s dominance in AI development, noting the company’s monopoly on data needed to train AI models. One proposed penalty could allow websites to opt out of having their content used for Google’s AI training or appearing in AI-generated summaries of search results. Prosecutors are even weighing whether Google should be required to provide competitors with access to the software models behind its AI-powered search features.

“Google’s ability to leverage its monopoly power to enhance its AI capabilities poses a growing threat to competition,” the DOJ said in its filing.

This case has been described as the biggest tech antitrust battle since the government’s showdown with Microsoft two decades ago.

In response to the August ruling, Google reiterated its stance that consumers choose its search engine because it is the best available. “We remain committed to building products that people find useful and easy to use,” Kent Walker, Google’s president of global affairs, said in a statement.

The outcome of this case could have implications for other antitrust lawsuits involving tech giants, including ongoing cases against Amazon, Apple, Meta, and Ticketmaster. Google itself faces another antitrust case from the DOJ and 17 states, focused on its advertising business.