US Government Renews Push to Break Up Google
▼ Summary
– A new trial begins Monday for the US government to argue for breaking up Google’s ad tech monopoly, following a previous ruling that preserved the company’s search business.
– Judge Leonie Brinkema, who ruled Google monopolized two ad tech markets, will oversee the case and is not bound by the earlier search-related decision.
– The DOJ is specifically requesting that Google sell its AdX exchange and open source the auction logic of its publisher ad server, DFP, to restore competition.
– Google argues that behavioral changes, such as allowing third-party access to AdX bids and removing pricing rules, are sufficient remedies without divestiture.
– The outcome could take years to implement due to potential appeals, and it will signal the justice system’s stance on breaking up major tech firms.
The US government is launching a renewed effort to dismantle Google’s advertising technology empire, marking a pivotal moment in the long-running antitrust battle against the tech giant. Federal lawyers will argue before a Virginia judge that only a breakup can restore fair competition in digital ad markets where Google has been found to illegally dominate.
Beginning this week, attorneys from the Justice Department and Google will face off in a federal courtroom in Alexandria for what is expected to be a two-week trial focused on remedies. The case centers on how to address Google’s monopolistic control over key advertising technology sectors. This proceeding follows a recent decision by a different federal judge in Washington, DC, who ruled that Google operated as an illegal monopoly in online search but declined to order the structural changes the government had sought.
Presiding over the new phase is US District Judge Leonie Brinkema, who previously determined that Google unlawfully monopolized two critical ad tech markets. Though not legally bound by the earlier search case outcome, Judge Brinkema is certainly aware of its implications. Legal observers suggest the DOJ may have stronger grounds here to push for a breakup, given how directly the court’s findings align with the requested divestiture.
A central element of the government’s argument is that Google should be forced to sell its AdX exchange, a platform that manages digital ad transactions across countless websites. The DOJ contends that AdX was improperly tied to Google’s publisher ad server, DoubleClick for Publishers (DFP), creating an ecosystem that stifled rivals and harmed publishers. Judge Brinkema has already agreed with that core finding, raising the possibility she may see a structural separation as justified.
In addition to the divestiture, prosecutors are urging the court to require Google to open-source the auction logic behind DFP. Should that measure fail to stimulate competition, the DOJ wants the judge to retain the authority to compel a sale of DFP as well. These steps, the government argues, are necessary to dismantle what it describes as an interconnected system designed to suppress competition.
Google, for its part, insists that behavioral adjustments are sufficient to address the court’s concerns. The company has proposed several changes, including granting third-party ad servers access to real-time bids in AdX, a feature critics say was previously reserved for Google’s own products. It has also offered to remove data export fees for publishers and eliminate certain pricing restrictions known as unified pricing rules. Additionally, Google says it would stop using controversial auction tactics like “First Look” and “Last Look,” which the DOJ argued gave it an unfair advantage.
The road ahead remains long and uncertain. However the judge rules, Google is expected to appeal both the remedies and the underlying monopoly verdict, a process that could stretch on for years. Still, the outcome of this trial will send a powerful signal about the judicial system’s appetite for taking bold action against dominant tech firms.
(Source: The Verge)
