U.S. asks judge to break up Google's ad tech business
Google is facing a demand by the US government to break up its hugely profitable ad technology business after a judge found the tech giant was commanding an illegal monopoly
By Alex PIGMAN
Google on Friday faced a demand by the U.S. government to break up its hugely profitable ad technology business after a judge found the tech giant was commanding an illegal monopoly.
"We have a defendant who has found ways to defy" the law, U.S. government lawyer Julia Tarver Wood told a federal court in Virginia, as she urged the judge to dismiss Google's assurance that it would change its behavior.
"Leaving a recidivist monopolist" intact is not appropriate to solve the issue, she added.
The demand is the second such request by the U.S. government, which is also calling for the divestment of the company's Chrome browser in a separate case over Google's world-leading search engine business.
The U.S. government specifically alleged that Google controls the market for publishing banner ads on websites, including those of many creators and small news providers.
The hearing in a Virginia courtroom was set to plan out the second phase of the trial, set for September 22, in which the parties will argue over how to fix the ad market to satisfy the judge's ruling.
The plaintiffs argued in the first phase of the trial last year that the vast majority of websites use Google ad software products which, combined, leave no way for publishers to escape Google's advertising technology and pricing.
District Court Judge Leonie Brinkema agreed with most of that reasoning, ruling last month that Google built an illegal monopoly over ad software and tools used by publishers, but partially dismissed the argument related to tools used by advertisers.
The U.S. government said it would use the trial to recommend that Google should spin off its ad publisher and exchange operations, as Google could not be trusted to change its ways.
"Behavioral remedies are not sufficient because you can't prevent Google from finding a new way to dominate," Tarver Wood said.
Google countered that it would recommend that it agree to a binding commitment that it would share information with advertisers and publishers on its ad tech platforms.
Google lawyer Karen Dunn did acknowledge the "trust issues" raised in the case and said the company would accept monitoring to guarantee any pledges made to satisfy the judge.
Google is also arguing that calls for divestment are not appropriate in this case, which Brinkema swiftly refused as an argument.
The company also said breaking up Google's control of the ad platforms would pose a data security risk for publishers and advertisers.
The judge urged both sides to mediate, stressing that coming to a compromise solution would be cost-effective and more efficient than running a weeks-long trial.
The business in question at the trial is just a portion of Google's colossal online advertising revenue, which is the driving engine of its fortune and pays for its free-to-use online services such as Maps, Gmail, and search.
Money pouring into Google's coffers also allows the Silicon Valley company to spend billions of dollars on its artificial intelligence efforts.
© 2025 AFP
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Today
a day ago
- Japan Today
Apple plays it safe on AI despite Wall Street pressure
By Glenn CHAPMAN and Alex PIGMAN Apple on Monday remained on its cautious path to embracing generative AI even as rivals race ahead with the technology and Wall Street expresses doubts over its strategy. The pressure was on Apple not to disappoint at its annual Worldwide Developers Conference (WWDC) a year after the iPhone juggernaut made a promise it failed to keep -- to improve its Siri voice assistant with generative AI. The annual WWDC is addressed to developers who build apps and tools to run on the company's products. Despite last year's disappointment, Apple insisted on Monday it was still very much in the AI race, announcing incremental updates to its Apple Intelligence software, including the ability for app makers to directly access a device's AI capabilities. This would allow users to engage with apps using generative AI while offline, letting them interact ChatGPT-style with a hiking app, for example, while in remote areas without a connection. Apple CEO Tim Cook briefly mentioned that Siri's AI makeover was still under development and "needed more time to meet our high quality bar," which includes Apple's standards on privacy and data security. "We are making progress, and we look forward to getting these features into customers' hands," he added. For Gadjo Sevilla, senior analyst for Emarketer, "the delays to Apple's in-house AI efforts will continue to draw scrutiny." "Especially since rivals like Google and Samsung are moving ahead by introducing new on-device AI capabilities, or partnering with AI startups like Perplexity (in Samsung's case) to provide users with AI features," he added. The biggest announcement at the event was the renaming of Apple's operating systems so that releases better match their release year. The next operating system will be iOS 26 and will be available across all of Apple's devices -- including the Mac, Watch and Vision Pro headset -- in the fall, in time for the likely release of the next iPhone 17. Today, Apple's operating systems have vastly different nomenclatures across devices, including the current iOS 18 for the iPhone or macOS 15 for Mac computers. Apple also announced that the new operating system will be the first major iOS redesign since 2013, calling the new look "Liquid Glass." The relationship between Apple and app-making developers has been strained in recent years, with developers chafing at the iPhone maker's high fees for getting access to the App Store. A marathon lawsuit by Fortnite maker Epic Games ended with Apple being ordered to allow outside payment systems to be used in the U.S. App Store. Adding to doubts about Apple's direction is the fact that the legendary designer behind the iPhone, Jony Ive, has joined with ChatGPT maker OpenAI to create a potential rival device for engaging with AI. Apple also has to deal with tariffs imposed by President Donald Trump in his trade war with China, a key market for sales growth and the place where most iPhones are manufactured. Trump has also threatened to hit Apple with tariffs if iPhone production wasn't moved to the US, a change which analysts say would be impossible given the costs and capabilities required. Wall Street analysts remain divided on Apple's prospects, with the stock down about 17 percent since the start of the year, wiping over $600 billion from its market value and far outshone by its Big Tech rivals. While some analysts remain optimistic about Apple's long-term AI monetization potential, others worry the company's cautious approach may prove costly in the longer term. WWDC "was void of any major Apple Intelligence progress as Cupertino is playing it safe and close to the vest after the missteps last year," said Dan Ives of Wedbush Securities. "We have a high level of confidence Apple can get this right, but they have a tight window to figure this out," he added. © 2025 AFP
Kyodo News
3 days ago
- Kyodo News
Japan telecom giant NTT Docomo to end own emoji after 26 yrs
KYODO NEWS - 5 hours ago - 10:40 | All, Japan Japanese telecom giant NTT Docomo Inc. will retire its set of original emoji whose release 26 years ago helped shape the visual language of today's digital communications. The carrier's Android smartphones and feature phones marketed from June will not come with the Docomo emoji set. Announcing the decision in late May, the firm said they had "fulfilled their role" while noting that Google's emoji had become more common globally. The new mobile phones will adopt Noto Color Emoji by Google or Samsung emoji instead, it said. The Docomo emoji were introduced in 1999 with the company's i-mode service, an Internet-capable mobile phone system that the company also plans to terminate, in 2026. Emoji became massively popular in Japan as an element of texting, especially among teenagers in the 2000s, with some creating emoji-only messages, before taking root globally. In 2016, NTT Docomo's set of 176 emoji was included in the collection of the Museum of Modern Art in New York, with the museum stating, "Filling in for body language, they reassert the human within the deeply impersonal, abstract space of electronic communication."
The Mainichi
3 days ago
- The Mainichi
Japan telecom giant NTT Docomo to end own emoji after 26 yrs
TOKYO (Kyodo) -- Japanese telecom giant NTT Docomo Inc. will retire its set of original emoji whose release 26 years ago helped shape the visual language of today's digital communications. The carrier's Android smartphones and feature phones marketed from June will not come with the Docomo emoji set. Announcing the decision in late May, the firm said they had "fulfilled their role" while noting that Google's emoji had become more common globally. The new mobile phones will adopt Noto Color Emoji by Google or Samsung emoji instead, it said. The Docomo emoji were introduced in 1999 with the company's i-mode service, an Internet-capable mobile phone system that the company also plans to terminate, in 2026. Emoji became massively popular in Japan as an element of texting, especially among teenagers in the 2000s, with some creating emoji-only messages, before taking root globally. In 2016, NTT Docomo's set of 176 emoji was included in the collection of the Museum of Modern Art in New York, with the museum stating, "Filling in for body language, they reassert the human within the deeply impersonal, abstract space of electronic communication."
