During recent court proceedings, Google sought to maintain its ad tech business amidst allegations of monopolistic practices. Witnesses in Google’s defense provided analogies likening the challenge of breaking up the company’s ad tech operations to complex endeavors like going to Mars or replacing a legendary basketball player. This case follows Google’s previous success in avoiding a breakup related to its search functionality.
The Department of Justice (DOJ) argued that divesting parts of Google’s ad technology, specifically the AdX exchange and aspects of its DoubleClick for Publishers (DFP) ad server, is technically feasible and necessary to prevent further monopolization. They emphasized that failing to do so could allow Google to continue leveraging its dominance over publishers. In response, Google presented various executives to illustrate the technical complexities involved in a potential breakup, with one engineer likening the undertaking to attempting a complex space mission.
Court Judge Leonie Brinkema has already ruled that Google illegally monopolized key markets for advertising tools, tying them together to advantage its own operations. During the defense, Google’s experts presented econometric analyses that aimed to demonstrate the efficiencies of its integrated ad systems, despite the court’s prior determination of their illegality.
Google’s defense included suggestions that adjusting its behavior rather than a complete divestiture would be a less risky method to restore competition. However, discussions arose regarding the potential conflict between maintaining some monopoly power and implementing effective remedies to address anticompetitive conduct.
Brinkema has indicated a focus on structural remedies to avert future monopolistic behavior, questioning the effectiveness of proposed behavioral modifications. The deliberation over the necessity of a breakup remains ongoing, with Brinkema suggesting that existing lawsuits might influence Google’s compliance with any forthcoming court orders.
Source: https://www.theverge.com/policy/792055/google-doj-ad-tech-remedies-trial-defense