A unique effort to dismantle Alphabet Inc.’s Google is among the possibilities being evaluated by the US Justice Department following a significant court decision that concluded the company held a monopoly in the online search sector, as reported by sources familiar with the discussions.

This action would mark Washington's initial attempt to break apart a company for unlawful monopolization since its failed attempts to split Microsoft Corp. twenty years ago. Less harsh alternatives involve requiring Google to provide additional data to rivals and implementing steps to hinder it from obtaining an unfair edge in AI offerings, according to individuals who requested anonymity when discussing confidential talks.

Nonetheless, the government will probably aim for a prohibition on the kind of exclusive agreements that were central to its case against Google. If the Justice Department proceeds with a divestment strategy, the most probable units to be sold off are the Android operating system and Google’s Chrome web browser, according to the sources. Officials are exploring the option of potentially compelling a sale of AdWords, the platform used by the company to sell text ads, according to one source.

Conversations within the Justice Department have escalated following Judge Amit Mehta’s ruling on Aug. 5, which determined that Google unlawfully monopolized online search and search text ad markets. Google has announced its intention to appeal the ruling, yet Mehta has directed both parties to start preparing for the second phase of the case, which will encompass the government's suggestions for reinstating competition, including a potential breakup request.

Alphabet's stock dropped by as much as 2.5% to $160.11 in after-hours trading before recovering some of the losses. A spokesperson for Google chose not to provide feedback on the potential solution. A spokesperson for the Justice Department also chose not to provide a comment.

The US proposal must be approved by Mehta, who would instruct the company to adhere. A mandatory breakup of Google would be the largest of a U.S. company since AT&T was broken up in the 1980s.

Attorneys from the Justice Department, who have been in talks with companies impacted by Google’s actions, have expressed worries in their discussions that the company's search supremacy provides it with benefits in advancing artificial intelligence technology, according to sources. To address the issue, the government may attempt to prevent the company from compelling websites to permit their content to be utilized for certain Google AI products to show up in search results.