All three internet companies have raised strong objections to Google's $125m (£77m) project on the basis that it restricts competition. The latest move raises questions over whether the deal will ever receive the stamp of approval.
If successful, the project would see the creation of an enormous online book registry, where users could read books that have been out of print for years.
Google reached agreement with US authors and publishers last year over the terms of the project after the Authors Guild and the Association of American Publishers (AAP) sued Google for copyright infringement.
However, the US Justice Department said the proposal raised copyright and anti-trust issues, and should be rejected in its current form. The court is due to rule on the issue early next month.
Under the terms of the deal, Google is prepared to establish a fund to compensate authors whose work it digitised when their material was viewed online.
One of the key concerns for the US Justice Department surrounds copyright. In its present form, Google would have sole authority for books whose copyright holder could not be found.
The Department is also worried that the deal does not provide sufficient protection for foreign rights holders. It also said it appears that Google's plans gives publishers the power to restrict price competition and muscle other digital distributors from the market.
In a joint statement, Google, the Authors Guild and the AAP said that they were "considering the points raised by the department and look forward to addressing them as the court proceedings continue".
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