Alphabet Google (GOOGL) Faces Unprecedented Pressure from U.S. Legislators to Sell Parts of Its Business. What’s Next?

As it’s became known earlier today, the U.S. Justice Department (DOJ) is considering requesting a federal judge to order Google to forcefully sell off parts of its business in what would be a historic breakup of one of the world's largest tech companies. According to Bloomberg, antitrust regulators are considering the split to mitigate the dominance of Alphabet's search business. The judge also ordered Google to provide access to the underlying data it uses to create search results and artificial intelligence products. The DOJ also said it may require Google to give websites the option to opt out of its artificial intelligence products. The DOJ is considering proposals related to Google's dominance in text search advertising, such as requiring the company to give advertisers more information and control over where their ads appear. The ministry could also require Google to limit its investments in search competitors and potential rivals.

On Monday, another federal judge ordered Google to keep its app store open for the next three years to settle another antitrust case brought by Epic Games over its monopoly on distributing apps on Android smartphones. The company also plans to appeal the decision.

Last month, the U.S. Justice Department and Google clashed in a third antitrust case centered on Google's dominant position in the technology used to buy and sell online advertising. Closing arguments in the case are scheduled for late November. Antitrust regulators intend to force Google to sell part of its ad-tech business if a court finds that Google has a monopoly in that market.

Numerous cases have increased antitrust pressure on Google, and the 32-page document outlines potential options for judges to consider when the case moves to the remedies stage. The ministry says it will provide more detailed proposals for remedies next month. More precisely, the DOJ is considering behavioral and structural measures that would prevent Google from using products such as Chrome, Play and Android in favor of Google Search and Google Search-related products and features. Last year, the European Union watchdog also discussed the possibility of unbundling Google's operations to address antitrust concerns.

It is the most significant move to crack down on digital monopolies since Washington's failed attempt to break up Microsoft 20 years ago. The U.S. Justice Department and the Federal Trade Commission have taken up the fight against the dominance of big tech companies, scrutinizing their deals and investments and accusing some of the nation's most powerful companies of illegally controlling the market. The FTC has made inquiries of Alphabet, Microsoft and Amazon.com about their investments in artificial intelligence startups as part of an investigation into how those alliances affect competition.

Google's share price initially fell almost 1.5% in pre-market trading in New York, but at the time of writing, the stock is already adding 0.8% to $165.70. Despite the antitrust whirlwind, a breakup of the company is unlikely at this point. Google will be litigating for years.