U.S. Files Motion to Disintegrate Google's Advertising Technology Division
Tech behemoth Google found itself facing a demanding order from the U.S. government to dismantle its towering digital ad tech empire last Friday, after a judge declared Google had illegally monopolized this segment.
"We got ourselves a defiant rule-breaker," U.S. government attorney Julia Tarver Wood argued in a Virginia court, pushing for the judge to disregard Google's plea to continue operating as usual. "Leaving this relentless monopolist in power isn't right for solving our predicament," she further asserted.
This is the second time the U.S. government has raised such a demand, also urging Google to abandon its Chrome browser in a separate case covering Google's leading search engine business.
The government specifically pointed the finger at Google for controlling the market for placing banner ads on websites — including those of many creators and small news providers.
The hearing in the Virginia courtroom was arranged to arrange the second phase of the trial, scheduled for September 22, in which the parties will debate on how to fix the ad market to abide by the judge's decision.
In the initial stage of the trial last year, the plaintiffs claimed that the vast majority of websites use Google's ad software products, effectively trapping publishers within Google's ad technology and pricing ecosystem.
District Court Judge Leonie Brinkema concurred with most of this line of reasoning, determining last month that Google had created an illegal monopoly over ad software and tools utilized by publishers, but partially dismissed allegations concerning tools utilized by advertisers.
The U.S. government plans to utilize the trial to advocate for Google to spin off its ad publisher and exchange operations, believing that Google cannot be trusted to alter its behavior.
"Behavioral remedies aren't enough because Google will simply discover a new way to dominate," Tarver Wood stated.
Google countered with a proposal to agree to a binding commitment to share information with advertisers and publishers on its ad tech platforms.
Google's attorney, Karen Dunn, conceded the trust issues raised in the case and confirmed that the company is open to monitoring to ensure any commitments are met.
Google also contends that calls for divestment would pose a threat to data security for publishers and advertisers.
Judge Brinkema encouraged both parties to engage in mediation, emphasizing that reaching a mutually beneficial agreement would be a more practical and efficient solution than holding a weeks-long trial.
The trial's primary focus is on a piece of Google's immense online advertising revenue, the lifeblood of its wealth and the funding for its free-to-use services such as Maps, Gmail, and search.
The considerable revenue flowing into Google's coffers also empowers the Silicon Valley firm to invest billions in its artificial intelligence initiatives.
- The U.S. government is pushing for the disregard of Google's plea to continue operating as usual, asserting that Google's digital ad tech empire has been illegally monopolized.
- Google faces a demand from the U.S. government to dismantle its digital ad tech empire, marking the second time such a demand has been made, the first being in a case concerning Google's leading search engine business.
- The government specifically accuses Google of controlling the market for placing banner ads on websites, including those of many creators and small news providers.
- In the initial stage of the trial, the plaintiffs claimed that the vast majority of websites use Google's ad software products, effectively trapping publishers within Google's ad technology and pricing ecosystem.
- Google countered with a proposal to agree to a binding commitment to share information with advertisers and publishers on its ad tech platforms.
- The U.S. government plans to advocate for Google to spin off its ad publisher and exchange operations, as they believe Google cannot be trusted to alter its behavior.
- The trial's primary focus is on a piece of Google's immense online advertising revenue, which empowers the company to invest billions in its artificial intelligence initiatives.
