DOJ Urges Google Breakup, Targets Chrome, Android and Data Sharing

The US Department of Justice on Wednesday pushed for the breakup of Google, calling for the company to sell off its Chrome browser, Android, and other remedies to end its dominance in the online search market.

US prosecutors won their landmark antitrust case against Google in August, when a federal judge ruled that the company ran an illegal monopoly in search and text advertising. US District Court Judge Amit Mehta has scheduled a trial for the potential remedies in April.

Mehta will decide whether to enforce the DOJ’s suggestions, including a ban on Google re-entering the browser market for five years, selling its Android mobile operating system, forcing the company to share its user data with competitors, along with other remedies to restore competition in the sector.

Google says the potential moves are devastating not only to its business, but the broader tech market.

“DOJ’s approach would result in unprecedented government overreach that would harm American consumers, developers, and small businesses -- and jeopardize America’s global economic and technological leadership at precisely the moment it’s needed most,” Kent Walker, Google parent Alphabet’s chief legal officer, said in a statement.

The DOJ argues that Google’s 90% market share in the search engine market was unfairly gained through lucrative multi-billion-dollar deals with Apple and other vendors. Google paid Apple $20 billion in 2022 to be the preferred search engine on its mobile devices. According to its most recent financials, Google’s quarterly revenue, which mostly comes from advertising on its search engine, amounted to $305.6 billion in 2023.

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“Google’s unlawful behavior has deprived rivals not only of critical distribution channels but also distribution partners who would otherwise enable entry into these markets by competitors in new and innovative ways,” the DOJ said in its court filing Wednesday.

Second Trump Administration Could Impact Case

The major unknown is how the incoming administration of President-elect Donald Trump will influence the final decision. While the case was first brought under the Trump administration, he has recently signaled that a Google breakup would be going too far.

“A lot of ink has been spilled about the incoming administration’s desire to take a lighter touch when it comes to regulation, but we shouldn’t forget that the investigation, which gave rise to this particular litigation arose under the Trump DOJ, and that big tech … has been a target of both Republican and Democratic politicians,” George Mastoris, co-chair of New York litigation practice at Winston & Strawn law firm, says in an e-mail interview.

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A breakup of Google could have far-reaching implications for the tech industry and beyond.

“If the court goes along with the DOJ’s recommendations and orders divestment, that would be a clear shot across corporate America’s bow and an indication that the entire remedial toolbox is in play -- even if the ultimate resolution of the case falls short of so drastic a remedy.” Mastoris says.

But the incoming administration could also take a lighter touch.

“This is likely to be a high variance administration,” Mastoris says. “I think we can likely expect an overall decrease in antitrust scrutiny … At the same time, I wouldn’t be surprised to see continued aggressive antitrust enforcement in the technology and media spheres, although I think the administration will be selective with respect to how they deploy their resources.”

Google stock slid 6.3% in trading by noon on Thursday following the news.