Google faces antitrust deja vu as US seeks to break up its digital advertising business
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Google faces antitrust deja vu as US seeks to break up its digital advertising business
"The trial scheduled to begin Monday in an Alexandria, Virginia, federal court will revolve around the harmful conduct that resulted in U.S. District Judge Leonie Brinkema declaring parts of Google's digital advertising technology to be an illegal monopoly. The judge found that Google has been engaging in behavior that stifles competition to the detriment of online publishers that depend on the system for revenue."
"Google and the Justice Department will spend the next two weeks in court presenting evidence in a "remedy" trial that will culminate in Brinkema issuing a ruling on how to restore fair market conditions. Although the judge hasn't set a timetable for making that decision, it's unlikely to come down before the end of this year because additional legal briefs and courtroom arguments are expected to extend into November before Brinkema takes the matter under submission."
"No matter how the judge rules, Google says it will appeal the earlier decision labeling the ad network as a monopoly. Appeals can't be filed until the remedy is determined. The case, filed in 2023 under President Joe Biden's administration, threatens the complex network that Google has spent the past 17 years building to power its dominant digital advertising business. Besides accounting for most of the $305 billion in revenue that Google's services division generates for its corporate parent Alphabet Inc., digital advertising sales provide the lifeblood that keeps thousands of websites alive."
A federal remedy trial will determine how to address parts of Google's digital advertising technology that a judge found to be an illegal monopoly. The trial will present evidence over two weeks for U.S. District Judge Leonie Brinkema to craft remedies aimed at restoring fair market conditions. Additional briefs and arguments are expected to push a final decision into November or later. Google plans to appeal the monopoly finding after remedies are set. The case threatens a 17-year ad-tech network that drives most of Alphabet's services revenue and supports thousands of websites dependent on ad sales.
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