The U.S. Department of Justice (DOJ) has intensified its efforts to rein in Alphabet Inc., the parent company of Google, as historic antitrust proceedings move into a critical phase.
The DOJ is seeking sweeping remedies that could fundamentally reshape Google’s business, including the forced divestiture of its Chrome web browser and restrictions on its exclusive agreements with device manufacturers and browser developers.
DOJ’s Push for Structural Breakup
The DOJ’s case, supported by a coalition of state attorneys general, argues that Google has illegally maintained its monopoly in online search and digital advertising through classic monopoly-building tactics.
Central to the government’s argument is Google’s use of exclusive contracts-such as multi-billion dollar payments to Apple and Samsung-to secure its position as the default search engine on smartphones and browsers. The DOJ contends these practices have stifled competition and harmed both advertisers and consumers.
In a move reminiscent of the landmark breakups of AT&T and Standard Oil, the DOJ is calling for Google to divest its Chrome browser, which generates billions in search revenue and is a key pillar of Google’s dominance.
Regulators are also proposing that Google be required to license its search results to competitors, end exclusive distribution agreements, and potentially even sell or restructure its Android mobile operating system if other remedies fail to restore competition.
AI and the Future of Search
A major concern for the DOJ is Google’s ability to leverage its artificial intelligence (AI) products, such as the Gemini chatbot, to further entrench its dominance as search and generative AI technologies converge.
The government is pushing for forward-looking remedies that would prevent Google from using AI advancements to reinforce its market power, including prohibiting exclusive agreements related to its AI products.
Alphabet’s Response and Market Impact
Google has vigorously defended its business practices, arguing that users choose its services because of their quality and innovation, not because of coercive contracts. The company warns that the DOJ’s proposed remedies would disrupt products relied upon by millions and could undermine U.S. technological leadership.
Google has indicated it will appeal any adverse ruling, emphasizing that its AI products should not be subject to the current antitrust case, which centers on search.
Financially, the mounting legal pressures are already being felt. Alphabet’s stock has fallen by about 20% since the start of 2025, reflecting investor concern over the potential for forced divestitures and regulatory uncertainty. The outcome of this case is widely seen as a bellwether for future antitrust actions against other Big Tech firms.
What Comes Next
A three-week remedies trial began on April 21, 2025, with testimony expected from top executives at Google, as well as leaders from competitors like Apple, Microsoft, and OpenAI. U.S. District Judge Amit Mehta, who previously ruled that Google illegally maintained its monopoly, is expected to issue a decision on remedies by August 2025.
If the DOJ prevails and Judge Mehta orders the breakup or significant restructuring of Google’s core businesses, it would mark the most consequential antitrust action against a U.S. technology company in decades, potentially altering the competitive landscape of the internet for years to come.