U.S. Department of Justice Considers Breaking Up Google into Smaller Companies

The move would mark Washington’s first attempt to dismantle a company for illegal monopolization since the failed efforts to break up Microsoft two decades ago.

A rare proposal to break up Google, a subsidiary of Alphabet, is among the options being considered by the U.S. Department of Justice after a landmark court ruling found the company had monopolized the online search market, according to sources familiar with the deliberations.

This initiative would be the first attempt by Washington to dismantle a company for illegal monopolization since the unsuccessful efforts to do so with Microsoft two decades ago. Less severe options include requiring Google to share more data with competitors and implementing measures to prevent the company from gaining an unfair advantage in artificial intelligence (AI) products.

Nevertheless, the government is likely to seek a ban on the type of exclusive contracts that were central to its case against Google. If the Department of Justice proceeds with a breakup plan, the most likely units for divestment would be Google’s Android operating system and its Chrome web browser.

Officials are also exploring the possibility of forcing a sale of AdWords, the platform Google uses to sell text-based advertising, according to one of the sources.

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