DOJ’s Google breakup remedy puts tech world on notice

The US Justice Department said in a new court filing that it may recommend a break up of Google (GOOG, GOOGL) as an antidote to unhealthy competition in the search engine market, showing just how far Washington is willing to go to rein in Big Tech.

DOJ lawyers used a 32-page document to outline a framework of options for DC District Court Judge Amit Mehta to consider, including "behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search."

Google in a blog post said that "DOJ’s radical and sweeping proposals risk hurting consumers, businesses, and developers."

Its stock fell slightly in pre-market trading Wednesday.

The proposal is the first step from the Justice Department to break up a tech empire since it tried to do so more than two decades ago with Microsoft (MSFT).

That case — which the DOJ referenced in its Tuesday court filing — resulted in a 2002 settlement that opened the door to broader competition in the internet browser software market.

The move by DOJ also sends a signal to other tech giants currently facing antitrust cases from DOJ and other Washington regulators as part of a wide-ranging effort by the Biden administration to rein in what it views as anticompetitive behavior across a number of industries.

The administration has already alleged anticompetitive conduct against tech giants Apple (AAPL) and Amazon (AMZN) and claimed that Microsoft's acquisition of gaming giant Activision Blizzard would create a gaming market monopoly.

The case against Google targeting its dominance in search resulted in a landmark decision in August, where DC District Court Judge Amit Mehta sided with DOJ and concluded Google illegally monopolized the online search engine market and the market for search text advertising.

Mehta concluded that Google’s agreements with browser providers and devices powered by Google’s Android operating system stifled rivals from entering and growing within the markets.

It will now be up to Mehta to decide what should happen now in a separate "remedies" phase of the trial that will likely start in 2025.

DOJ is expected to provide a more detailed document by Nov. 20 outlining these remedies. But the 32-page document filed late Tuesday offers several points of focus beyond forcing Google to sell parts of its business.

One has to do with contracts that secure Google’s search engine as a default on internet browsers and internet-connected devices that use Google’s Android operating system.