The US government is taking a second stab at breaking up Google

The US government is taking a second stab at breaking up Google

Starting Monday, the U.S. government will present its case to a federal judge in Alexandria, VA, regarding the potential breakup of Google. This follows a previous ruling by a different judge that acknowledged Google’s monopolistic status but opted not to split the company. The trial, expected to last about two weeks, will focus on restoring competition in the advertising technology market, where the Justice Department claims Google has engaged in illegal monopolistic practices.

The trial occurs shortly after D.C. District Court Judge Amit Mehta ruled that Google is a monopoly in online search but did not grant the government’s requests for more extensive remedies. Mehta’s ruling allowed Google to retain its Chrome browser and continue paying for prominent distribution on browsers and phones, which were significant points of contention for the government.

Eastern District of Virginia Judge Leonie Brinkema, who found Google to be a monopolist in advertising technology markets, will oversee this case and is not bound by Judge Mehta’s prior ruling. The government believes that the specific issues in the advertising technology market may lead to a different outcome. The Justice Department is asking Brinkema to require Google to divest its AdX exchange, which facilitates digital ad transactions. This is based on findings that Google illegally tied AdX to its publisher ad server, creating a potential basis for a separation of these services.

In contrast, Google maintains that the problems identified can be addressed through minor adjustments, and it argues that the Justice Department’s proposals would unnecessarily unwind previous acquisitions. Google suggests offering third-party publisher ad servers access to real-time bids on AdX and allowing publishers to export their data freely.

As the case progresses, Google’s ability to appeal the monopoly finding is contingent on the remedies ruling, indicating that even if a breakup is ordered, the implementation could take years. The outcome may have significant implications for how antitrust laws are applied to major technology companies.

Source: https://www.theverge.com/policy/782029/google-doj-ad-tech-remedies-trial-break-up

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