DOJ Considers Breaking Up Google Following Landmark Antitrust Ruling

In the wake of a recent court decision that found Google guilty of illegally monopolizing the online search market, the DOJ is weighing options to restore competition, including a potential breakup of the tech giant.

Bloomberg reports that the DOJ is deliberating on the possibility of breaking up Google following a landmark court ruling that found the company guilty of illegally monopolizing the online search and search text advertising markets. This marks the first time since the unsuccessful efforts to break up Microsoft two decades ago that Washington has considered dismantling a company for illegal monopolization.

According to people with knowledge of the deliberations, the Justice Department is also exploring less severe options, such as requiring Google to share more data with competitors and implementing measures to prevent the company from gaining an unfair advantage in AI products. However, the government is likely to seek a ban on the type of exclusive contracts that were central to its case against Google, regardless of the chosen course of action.

If the DOJ decides to pursue a breakup plan, the Android operating system and Google’s web browser, Chrome, are the most likely candidates for divestment. Officials are also considering the possibility of forcing a sale of AdWords, the platform used by the company to sell text advertising.

The Justice Department’s discussions have intensified following Judge Amit Mehta’s August 5 ruling, which found that Google illegally monopolized the markets of online search and search text ads. Google has stated its intention to appeal the decision, but Mehta has ordered both parties to begin planning for the second phase of the case, which will involve the government’s proposals for restoring competition, potentially including a breakup request.

The government’s plan will need to be accepted by Mehta, who would then direct the company to comply. A forced breakup of Google would be the most significant dismantling of a U.S. company since the breakup of AT&T in the 1980s.

In his decision, Mehta found that Google requires device makers to sign agreements to gain access to its apps like Gmail and the Google Play Store. These agreements also require that Google’s search widget and Chrome browser be installed on devices in such a way that they can’t be deleted, effectively preventing other search engines from competing.

The ruling also found that Google monopolized the advertisements that appear at the top of a search results page, known as search text ads. These ads are sold via Google Ads, formerly known as AdWords, and account for about two-thirds of Google’s total revenue, amounting to more than $100 billion in 2020.