Google faces new federal trial over advertising technology breakup
Google is set to face a new federal court trial on Monday, as US government lawyers seek a judge’s order to break up the tech giant’s advertising technology business.
This lawsuit marks Google’s second significant legal challenge this year, following a similar demand that was dismissed by a judge earlier this month.
The upcoming trial will specifically address Google’s ad tech “snack”, the suite of tools utilised by website publishers to sell ads and advertisers to purchase them.
In a landmark ruling earlier this year, Federal Judge Leonie Brinkema agreed with the US Department of Justice (DOJ) that Google holds an illegal monopoly in this market.
The trial will determine the penalties and changes Google must implement to dismantle its monopoly.
The US government plans to argue for the divestiture of Google’s ad publisher and exchange operations, along with a proposed 10-year ban on the company operating an ad exchange after these divestitures.
Google is expected to counter that the proposed divestiture demands exceed the court’s findings are technically unfeasible and could negatively impact the market and smaller businesses.
Google’s Vice President of Regulatory Affairs Lee-Anne Mulholland, stated that the DOJ’s case misunderstands the dynamics of digital advertising and overlooks the increasing competition in the landscape.
Earlier this month, the European Commission fined Google €2.95 billion ($3.47 billion) for its dominance in the ad tech market, raising concerns about the adequacy of the penalties given that it had previously suggested a divestiture might be necessary.
This trial follows a prior case that determined Google operated an illegal monopoly, with the current proceedings expected to last about a week. Closing arguments are scheduled for a few weeks later.
This challenge comes just after a separate judge rejected the government’s call for Google to divest its Chrome browser, which many viewed as a victory for the tech giant.
Instead of a major breakup, Google was ordered to share data with its rivals, contributing to a 20% surge in shares for parent company Alphabet since that decision.
Judge Brinkema has indicated that she will consider the outcome of the earlier search trial when making her decisions in the current case.
These legal proceedings are part of a broader bipartisan effort against major technology companies, with five pending antitrust cases currently facing the industry.
Aaj English


















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