The Justice Department said it is considering asking a federal judge to order a breakup of Google's monopoly on internet search – a move that could upend Big Tech's entire business model.
The feds pointed to forced divestment of Google Chrome, the Google Play app store or the Android operating system as among potential “behavioral and structural measures” to address the company's “unlawful conduct.”
“Full redressing these harms requires not only ending Google's control over distribution today, but also ensuring that Google cannot control distribution tomorrow,” the Justice Department said in a filing late Tuesday.
Shares of Google's parent company, Alphabet, fell nearly 2% early Wednesday.
In August, Judge Amit Mehta ruled that Google had built a monopoly over search by making billions of dollars in payments to prevent competition and other illegal tactics.
It is expected to make a final decision on remedies for Google's conduct by next summer.
The Justice Department also considered the possibility of requiring Google to share relevant search data, indexes and models with competitors to ensure a level playing field. The feds said they would present a more complete proposal for Mehta's review in November.
The development of artificial intelligence represents “an emerging barrier to competition and risks further entrenching Google's dominance,” the agency added, and any remedies ordered by the judge should take into account its impact on the market.
A forced sale is one of several options Mehta is expected to consider before making a final decision.
The judge could also force Google to stop making payments to smartphone makers like Apple and carriers like AT&T to ensure the search engine is installed by default on most devices.
Justice Department lawyers focused on these payments throughout the trial.
Google, which said it would appeal Mehta's original ruling, called the Justice Department's remedial framework “radical” and said the proposals “go far beyond the specific legal issues in this case.”
“Excessive government action in a rapidly growing industry could have unintended negative consequences for American innovation and American consumers,” Google vice president of regulatory affairs Lee-Anne Mulholland said in a blog post. “We look forward to presenting our arguments in court.”
Rival search engine DuckDuckGo – whose founder Gabriel Weinberg was one of the most vocal witnesses to testify against Google at the trial – praised the Justice Department's proposal.
“This proposal, based on the court's ruling, intelligently aims to break Google's illegal control of the general search market and usher in a new era of sustainable competition,” said Kamyl Bazbaz, senior vice president of public affairs for DuckDuckGo.
Google is in the midst of unprecedented regulatory action as numerous antitrust cases cover various areas of its business.
Earlier this week, U.S. District Judge James Donato ruled that Google must open its lucrative Play Store to rivals. His decision came months after Google suffered a stunning defeat in an antitrust case against “Fortnite” creator Epic Games.
Google is also facing a separate Justice Department case targeting its alleged monopoly on digital advertising technology. Closing arguments in this trial are scheduled for next month.
Several Wall Street analysts say so and have already started issuing warnings about the potential breakup of Google as having a significant impact on the company's business in the coming months and years.
Google CEO Sundar Pichai recently admitted that the company's legal battle will likely drag on for years.
