The Justice Department told a federal judge late Tuesday that it may ask for a breakup of Google-parent Alphabet as a possible antitrust remedy. Google stock fell Wednesday morning.
The Tuesday night court filing also said DOJ antitrust officials could recommend that Google open up its core data that it uses for search research and artificial intelligence tools.
The Justice Department "is considering behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features — including emerging search access points and features, such as artificial intelligence — over rivals or new entrants," the agency said in the filing
On Aug. 5, Judge Amit Mehta ruled that Google illegally maintained a monopoly over online search services and prevented revivals from developing their own products. A key part of the ruling centered over multibillion payments that Google makes to Apple and others to be the default search engine on the iPhone and browsers such as Firefox.
Those payments may be barred as part of the judge's ultimate ruling.
Soon after the ruling, there were reports that the DOJ was considering a Google breakup.
Google Responds To DoJ Plan
In a blog, Google called the DOJ's potential plan "radical."
"This case is about a set of search distribution contracts. Rather than focus on that, the government seems to be pursuing a sweeping agenda that will impact numerous industries and products, with significant unintended consequences for consumers, businesses, and American competitiveness," Google said in the blog. "The DoJ's outline also comes at a time when competition in how people find information is blooming, with all sorts of new entrants emerging and new technologies like AI transforming the industry."
At Bernstein Research, analyst Mark Shmulik said in a note: "The DOJ's remedy menu had four distinct courses: search distribution, data usage, search adjacencies, and advertiser monetization. What is interesting to note is that there were specific mentions of AI-related remedies across all four blocks. In our view, the last thing Google needs right now in the broader AI battle is having to fight with one hand tied behind their backs by regulators."
Judge Mehta plans to begin the remedy stage of the trial by spring 2025 and issue a ruling by next August.
Google intends to appeal Mehta's ruling, but can't do so until he issues a ruling.
Meanwhile, A U.S. District Court judge on Oct. 7 ruled that Google must let third-party app stores such as the Epic Games Store onto Google Play, ensure parity of apps across stores, and crucially not require use of Google Play billing.
The ruling by U.S. District Judge James Donato came after a jury found Google's Android a monopoly in app distribution and in-app billing in December 2023. Also, Google said it will appeal.
Google Stock
Google stock fell 1.5% to 161.86 Wednesday, undercutting the 21-day line and just holding the 50-day moving average. GOOGL stock has a 191.75 consolidation buy point, but investors might use the Oct. 1 intraday high of 169.16 as an aggressive entry.
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