"Google parent Alphabet ( GOOGL) could be in settlement talks with the Department of Justice in the antitrust case alleging the company has used classic monopoly-building tactics to dominate online advertising, says a Wall Street analyst. Depending on the terms of a settlement, Google stock or digital ad firms could get a boost. In April, Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia ruled that Google has illegally monopolized the sophisticated online-auction technology that decides which ads appear on websites."
"The DOJ had claimed Google's dominance of the digital ad market has damaged advertisers and content creators. Some analysts have called it the "DoubleClick trial." In 2008, Google acquired leading digital advertising firm DoubleClick for $3.1 billion. Brinkema in September held hearings to discuss possible remedies. The government has stated that Google should sell off its Google Ad Manager, which includes the company's publisher ad server and its ad exchange."
"In a report, Evercore ISI analyst Robert Coolbrith noted that on Nov. 13 Judge Brinkema issued a brief continuance of closing arguments in antitrust ad tech trial. Closing arguments, originally set for Nov. 17, were moved to Nov. 19. Then Brinkema, citing scheduling conflicts within the courthouse, moved closing arguments to Nov. 21. "Our quick consultation with legal and industry contacts suggests that the parties' request for continuance could be indicative of settlement negotiations," Coolbrith said. He added: "We believe that a settlement could be a positive catalyst for Magnite ( MGNI) and PubMatic ( PUBM) - in our view, current investor consensus is that a decision not including a structural remedy is more likely than not, with investors more divided on the potential scope and ti"
Settlement talks may be underway between Alphabet and the Department of Justice in an antitrust case alleging monopoly-building tactics in online advertising. A federal judge ruled that Google illegally monopolized online-auction technology that determines which ads appear on websites. The DOJ asserts market dominance harmed advertisers and content creators and has proposed a structural remedy requiring sale of Google Ad Manager, including the publisher ad server and ad exchange. Recent hearings and a brief continuance of closing arguments have prompted speculation of negotiations. Analysts say a settlement could positively affect independent ad-tech firms such as Magnite and PubMatic depending on remedy scope.
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