The U.S. Justice Department is proposing to "slice" Google into separate companies - Chrome, Android and probably Google Ads

Following the court's ruling that classified Google as a monopolist in the online search market, the U.S. Department of Justice is considering the option of breaking up the company as a potential course of action.

This could mark the first division of a company due to illegal monopolization since the failed attempts to separate Microsoft two decades ago. Meanwhile, less severe measures are also being contemplated, such as compelling Google to share more data with competitors and implementing strategies to prevent the company from gaining an unfair advantage in artificial intelligence products.

Nevertheless, the government is likely to pursue a ban on exclusive contracts that have been central to the case against Google. If the Department of Justice insists on a breakup, the most probable assets for sale are the Android operating system and the Google Chrome web browser, according to informed sources. Officials are also considering the potential forced sale of the AdWords platform, which the company uses for selling text and display advertising.

Giving up the Android OS, which is used on approximately 2.5 billion devices worldwide, is one of the remedies most frequently discussed within the Department of Justice. The crux of the matter is that Google requires device manufacturers to sign agreements to install its applications, such as Gmail, Google Play Store, and so on. These agreements also mandate that the Google search widget and the Chrome browser be installed on devices in such a way that they cannot be removed, essentially hindering competition from other search engines.

Discussions within the Department of Justice have intensified following Judge Amit Mehta's ruling on August 5 that declared Google guilty of illegally monopolizing the markets for online search and search text advertising. Google has stated that it will contest this decision. However, Mehta has ordered both parties to begin planning the second phase of the case, which will include government proposals for restoring competition, including a potential request to break up the company.

The U.S. government's plan still needs to be approved by Mehta before it can order the company to comply. A forced breakup of Google could become the largest among American companies since the breakup of AT&T in the 1980s.

Source: bloomberg