Breakup of Google ad tech monopoly on the table in remedy trial
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Breakup of Google ad tech monopoly on the table in remedy trial
"The Justice Department gets a second chance to force a breakup of Alphabet Inc.'s Google Monday as it heads to court before the Virginia federal judge who ruled the search giant illegally monopolized advertising technology markets. Judge Leonie Brinkema in Alexandria is expected to hear testimony over two weeks from website publishers, advertisers, technology experts and Google's own employees about whether the company should be forced to divest a key piece of its business the advertising exchange AdX."
"The Justice Department and a group of states say a sale is the best way to restore competition in the market for online display advertising, the ads that appear on news sites, blogs and other websites to help offset the cost of producing content. The company says a full divestiture of AdX isn't needed and instead has proposed to make its ad tech tools work seamlessly with those of rivals."
"It was one of three recent rulings that found Google violated US antitrust laws. In April, Brinkema ruled that Google illegally monopolized ad exchanges which conduct lightning fast auctions that connect advertisers to websites with ad space as well as tools used by sites to manage the inventory of space for sale, known as ad servers. Google plans to appeal the ruling, but in the meantime Brinkema is moving forward with designing a remedy for the illegal conduct."
A Virginia federal court will hear two weeks of testimony to determine whether Google should be forced to divest its advertising exchange, AdX, after a judge found the company illegally monopolized advertising technology markets. The Justice Department and coalition states argue a sale of AdX is necessary to restore competition in online display advertising that funds news sites, blogs and other publishers. Google contends full divestiture is unnecessary and proposes interoperability between its ad tech tools and rivals. Prior rulings include a rejection of a Chrome sale request and a finding that Google monopolized ad exchanges and ad servers; Google plans to appeal while remedies are designed. Google warns that a forced breakup could harm publishers, advertisers and small businesses that rely on its tools.
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