Alphabet’s Google will insist on a judge on Friday to avoid breaking up its advertising technology company in an action to terminate its control of tools necessary to selling ads on the Internet.
U.S. District Judge Leonie Brinkema is holding a key hearing in Alexandria, Virginia, to evaluate broad remedies aimed at restoring competition in the digital advertising technology market. The hearing marks a significant step in the Justice Department’s antitrust case against Google, focused on the company’s dominance in tools used by website publishers to sell digital ads.
Google Aims to Avoid a Forced Selloff
Google is seeking to avoid a scenario similar to its separate antitrust case in Washington, where the DOJ is pushing for a potential divestiture of the Chrome browser to curb Google’s search monopoly. In this ad tech case, Google is arguing that a forced breakup is not legally justified, especially since its ad tools serve broader functions than just facilitating website ads.
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The tech giant is trying to convince Judge Brinkema that selling off core assets like its ad exchange or ad server would be excessive and unwarranted under antitrust law.
DOJ Pushes for Structural Remedy
The Department of Justice has countered by urging the court to consider forcing Google to divest at least its Google Ad Manager, which encompasses the company’s publisher ad server and ad exchange. These tools are crucial in the online advertising ecosystem, enabling content providers and news outlets to manage and monetize their ad inventory.
Judge Brinkema previously ruled in April that Google illegally tied the use of its ad exchange to its publisher ad server, and employed anticompetitive practices that undermined publishers and harmed users. She concluded that Google’s actions were not in the best interests of its customers and had a damaging effect on market competition.
Global Pressure Builds on Google
This case mirrors mounting pressure on Google from global regulators. In Europe, the company has reportedly considered divesting its ad exchange to satisfy antitrust authorities, according to a Reuters report from September.
The outcome of Brinkema’s proceedings could have far-reaching consequences for Google’s ad business — a major revenue stream — and for the broader digital advertising industry.