The DOJ is seeking to break up Google’s advertising technology monopoly in the remedy phase of the government’s ad tech antitrust trial set to begin Monday in Virginia federal court. Google survived the previous Search antitrust trial with a slap on the wrist — a far cry from the forced sale of Chrome and other remedies the government sought.
Bloomberg reports that in a sequel to the recently concluded Search antitrust trial, the DOJ will argue before Judge Leonie Brinkema in Alexandria, Virginia, that Google should be forced to divest a key piece of its business – the advertising exchange AdX. The remedy phase, which is expected to last two weeks, marks the Justice Department’s second attempt to address Google’s monopoly power, this time over the advertising technology market.
The case centers around Google’s dominance in the digital advertising space, particularly its control over the technology that connects advertisers with website publishers. Judge Brinkema previously ruled that Google holds an illegal monopoly over both the publisher ad server and ad exchange markets, as well as unlawfully tying those two services together, violating Sections 1 and 2 of the Sherman Act.
During the remedy phase, Judge Brinkema will hear testimony from a range of stakeholders, including website publishers, advertisers, technology experts, and Google employees. The DOJ will present evidence to support its claim that Google’s control over the AdX exchange has allowed it to engage in anticompetitive practices and stifle innovation in the ad tech industry.
Google, on the other hand, is expected to argue that its success in the digital advertising market is the result of superior technology and innovation, rather than anticompetitive behavior. The company has previously stated that the ad tech industry is highly competitive and that its products benefit both advertisers and publishers.
The outcome of this trial could have far-reaching implications for the future of the digital advertising industry and Google’s business model. If the DOJ prevails, Google may be required to divest AdX, potentially reshaping the landscape of online advertising and opening up new opportunities for competitors.
Hopes remain high for significant action against Google in this case, but the first antitrust trial’s outcome are widely viewed as a spectacular failure for the government. As Breitbart News previously reported, not only was Google not forced to divest any aspects of its empire, but also was allowed to preserve its massive deals with companies like Apple to ensure default search status on their devices:
The judge’s decision allows Google to continue paying partners like Apple for preferential placement of its search engine, a crucial win for both companies. Apple receives an estimated $20 billion annually from Google for making it the default search option on iPhones. The ruling does require Apple to better promote alternative search engines and adjust default settings yearly.
Judge Mehta indicated the allowance of payments could be revisited if competition is not substantially restored through the imposed remedies. Analysts at MoffettNathanson called the ruling a “slap on the wrist” and “a home run for the status quo” that has greatly benefited Google and Apple.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
