The DOJ Wants to Break Up Google Monopoly. What to Know.

The United States may be about to witness antitrust history. Recently, a federal judge handed down a warning against Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), ruling that Google holds an unfair monopoly over the search engine market. Described as the “biggest tech antitrust case in decades,” this ruling may already be about to yield action.

According to reports, the U.S. Department of Justice is considering taking steps to break up the Google monopoly. Indeed, after years of politicians floating the possibility of breaking up Big Tech, it may actually be about to happen. If it does, this could severely impact GOOGL stock, generating momentum that would likely spread to many other prominent tech companies.

Breaking Up the Google Monopoly?

The technology sector hasn’t experienced anything like this before. As such, there’s no set playbook for investors looking to stay ahead as GOOGL stock prepares to be shaken up. It isn’t clear just how much it will impact share prices if the DOJ continues with this quest to break up the Google monopoly. But both GOOGL and GOOG stock are in the red today, suggesting that the market isn’t reacting well to the news. As The New York Times reports:

“Justice Department officials are considering what remedies to ask a federal judge to order against the search giant, said three people with knowledge of the deliberations involving the agency and state attorneys general who helped to bring the case. They are discussing various proposals, including breaking off parts of Google, such as its Chrome browser or Android smartphone operating system, two of the people said.”

According to sources, the government is currently meeting with “other companies and experts” to determine the best way to limit Google’s power. The judge in charge of overseeing the case has asked Google and the DOJ to propose a means of fixing the problem with Google’s monopoly by Sept. 4. This key date will likely mark an important point in the company’s history.

Why It Matters

The motion to break up the Google monopoly may strike some as extreme. But now a federal judge has shown that powerful tech companies are not above the law. This could usher in a new trend. Indeed, the days of experts being able to compare Silicon Valley to the Wild West may be coming to an end.

If the DOJ moves to break up the Google monopoly, the company will probably remain an industry leader. But its smaller rivals would likely be the real winners, as their market shares could increase.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.