The US Department of Justice is contemplating a range of options, including the potential breakup of Alphabet-owned Google, following a significant court ruling that found the tech giant had monopolised the online search market, according to Bloomberg News.

Last week, Judge Amit Mehta ruled that Google had illegally monopolised the markets for online search and search text ads. This verdict marks a major victory for federal authorities in their efforts to curb the market dominance of Big Tech companies.

In response to this ruling, the Justice Department is now exploring various remedies to restore competition in the market. The most drastic option under consideration is breaking up the company, which would be Washington's first attempt to dismantle a firm for illegal monopolisation since the unsuccessful efforts to break up Microsoft Corp two decades ago.

According to sources familiar with the matter cited by Bloomberg, the Justice Department is particularly focused on potentially divesting Google's Android operating system, which is used on approximately 2.5 billion devices worldwide. Officials are also considering the forced sale of AdWords, Google's platform for selling text advertising, and the possible divestment of its Chrome web browser.

Less severe options are also on the table, including requiring Google to share more data with competitors and implementing measures to prevent the company from gaining an unfair advantage in AI products. The government is likely to seek a ban on the type of exclusive contracts that were central to its case against Google.

The Justice Department's deliberations have intensified following Judge Mehta's ruling on 5 August. While Google has stated its intention to appeal the decision, Mehta has ordered both sides to begin planning for the second phase of the case, which will involve the government's proposals for restoring competition.

If the Justice Department pursues a breakup plan, it would need to be accepted by Judge Mehta, who would then direct the company to comply. A forced breakup of Google would be the most significant dismantling of a US company since AT&T was broken up in the 1980s.

The potential remedies being considered reflect concerns that Google's search dominance gives it advantages in developing artificial intelligence technology. The government might seek to prevent Google from forcing websites to allow their content to be used for some of its AI products in order to appear in search results.

Alphabet shares fell as much as 2.5 per cent to $160.11 in after-hours trading following the Bloomberg report.

The Justice Department's considerations come amidst a broader push by US antitrust regulators to rein in the power of Big Tech. In recent years, federal authorities have also sued Meta Platforms, Amazon, and Apple, claiming these companies illegally maintained monopolies.

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