Shares in Google Parent Alphabet plummeted nearly 5% early Monday in the first trading session as President Trump's Justice Department confirmed it was seeking to dissolve the online search giant's monopoly.
The DOJ lawyers formally asked District Judge Amit Mehta to force Google to sell their Chrome web browser. Mehta decided last August that Google is a “monopoly” with illegal strangleholds in the search market, promoting billions of dollars payments to partners like Apple, and enabling search engines by default on most smartphones.
In a scathing court filed late Friday, the DOJ said Google will rely on “illegal conduct” to create “economic goliaths” and wreaking havoc in the market to ensure that “no matter what happens, you always win.”
“In this way, Americans are forced to accept the unlimited demands of Leviathan and the changing ideological preferences of the economy in exchange for the search engines enjoyed by the public,” the DOJ said in a court filing.
Seller-offs came alongside wider market disruptions, with the technology-rich NASDAQ index entering nearly 600 points, or 3.2%. Alphabet's stock has fallen nearly 13% since the beginning of the year.
The proposal was largely in line with the relief package originally outlined in a preliminary submission by President Biden by DOJ last year. Google's crackdown confirmed it is likely to continue under Trump, which is highly critical of the company's practices.
Google Chrome accounts for “over 30% of search inquiries,” according to submissions.
The Fed said Google should end its “default search engine” partnership with Apple, AT&T and other companies. Google paid Apple $20 billion in 2022 alone, making it the default engine for the Safari browser.
Google also needs to share data related to search and digital ads with its rivals to ensure a level playing field.
DOJ also recommends forced Google to sell the Android operating system if the initial relief is “ineffective.”
However, in a transition from past positions, the DOJ has dropped its demand that Google be forced to sell its investments in artificial intelligence companies such as humanity. Instead, Google should provide advance notice of “future investments” in AI.
Mehta will hold a hearing in April to consider discussions from the DOJ and Google regarding the proposed relief measures. The judge's final decision is expected this summer.
Google has vowed to appeal the judge's ruling in the case.
A Google spokesperson said DOJ's “defensible proposals will continue to go beyond court decisions and will harm American consumers, the economy and national security.”
Google CEO Sundar Pichai was one of the tech executives who attended Trump's inauguration in January as part of an industry-wide effort to reset ties with the president.
Company executives also met with Trump officials in recent weeks to report that they were seeking generosity in search cases, Bloomberg said. Google partially argued that forced dissolution could put national security at risk.
