Latest news with #JuliaTarverWood
Yahoo
05-05-2025
- Business
- Yahoo
First search, now ads: How Google could be forced to break up its empire
The Department of Justice wants Google (GOOGL) to clear more than just its cache. In a pair of antitrust lawsuits happening right now, the federal government is looking to spin off key pillars of the tech giant's empire — namely its ad tech business and Chrome browser. In one federal courtroom, the DOJ is arguing that Google illegally maintained its monopoly in online search by paying billions to become the default engine on smartphones and browsers. In another, the federal government is pushing to dismantle the company's ad tech empire — where it controls the software and infrastructure that powers much of the web's automated advertising auctions. Together, these two markets account for the vast majority of revenue at Alphabet, Google's $2 trillion parent company. And now, after years of regulatory scrutiny, both are under legal siege that strike at the heart of the company's business. The stakes are high. If the DOJ gets its way, the result would be the most aggressive corporate breakup ordered by the U.S. government since that of AT&T (T) in the 1980s. The ad tech lawsuit, filed in 2023, took a critical turn last month when Judge Leonie Brinkema ruled that Google had illegally tied together key parts of its advertising stack — specifically its publisher ad server and its ad exchange (AdX). That allowed Google to box out any potential competitors and control the flow of digital ad dollars across the open web. Essentially, Google designed a system where publishers had little choice but to use its tools to list and auction off ad space — and where the buyers, also on Google's platforms, were funneled through its exchange. The DOJ has said that this vertical integration allowed the company to quietly tilt the rules in its favor, manipulating auctions and undermining competition while pocketing a larger share of the ad market. At a hearing Friday in Virginia, the DOJ revealed its plan: force Google to divest both its publisher ad server and AdX, saying these businesses 'must be separated' to restore competition and break Google's dominance. The government also wants Google to open its real-time bidding infrastructure to rival firms, calling the status quo 'too dangerous' for the market. Julia Tarver Wood, the DOJ's lead lawyer, warned that if 90% of publishers remain tied to Google's infrastructure, the market cannot function fairly. Google, unsurprisingly, has rejected the government's approach, arguing that such a breakup would be extreme, legally unprecedented, and potentially harmful to internet users. The company also emphasized that it competes for ad spending with rivals such as Meta (META), Amazon (AMZN), and TikTok. Karen Dunn, the company's lead counsel, said the DOJ's proposal is 'very likely completely impossible' without causing serious issues — citing concerns about privacy, security, and a lack of credible buyers. The company's lawyers say Google is willing to implement behavioral changes — such as sharing real-time ad exchange data and increasing auction transparency with rivals — but not sell any parts of its business. Dunn said that the only companies that could afford to buy its ad tech are 'enormous tech companies' and that, in such a sale, Google's security and privacy could disappear. 'The DoJ's additional proposals to force a divestiture of our ad tech tools go well beyond the court's findings, have no basis in law, and would harm publishers and advertisers,' said Lee-Anne Mulholland, Google's head of regulatory affairs. Brinkema has scheduled a trial for September 22 to hear the proposals and Google's rebuttals — and to rule on any potential remedies. The ad tech case is only half the battle. Google is defending itself against a separate antitrust ruling going back to 2020 that found the company illegally maintained a monopoly in online search. The key tactic? Exclusive deals. For years, Google paid companies such as Apple (AAPL), Samsung, and Mozilla more than $20 billion annually to make its search engine the default option on their devices and browsers. That tactic, Judge Amit Mehta ruled in 2o24, helped entrench Google's dominance and shut out competition So what remedy is the DOJ is proposing? For one thing, a forced sale of Chrome, the world's most-used browser. That browser, the government argues, is a linchpin in Google's dominance. The DOJ says it's more than just a browser — it's an access point that defaults to Google Search and collects enormous troves of data. Forcing Google to sell Chrome, the DOJ claims, would break the company's feedback loop among search, ads, and AI — and open space for competitors to play catch-up. Mehta hasn't ruled yet on remedies in that case, but the proposal to spin off Chrome is already making waves. Tech companies including OpenAI, Perplexity, and even Yahoo (APO) have reportedly expressed interest in acquiring the browser if it's put up for sale. The DOJ has asked for other heavy penalties, such as making the company provide rivals with some of its data about what terms people search for and what websites they click on. The government also asked that Mehta preserves the ability to force Google to sell its smartphone operating system, Android, if the proposed remedies don't restore search competition. 'Your honor, we are not here for a Pyrrhic victory,' DOJ lawyer David Dahlquist said in court in late April. 'This is the time for the court to tell Google and all other monopolists who are out there listening — and they are listening — that there are consequences when you break the antitrust laws.' But Google CEO Sundar Pichai appeared Wednesday in a Washington court in the search remedies trial and argued the proposals were 'far-reaching, so extraordinary' that they would effectively give competitors 'the ability to reverse-engineer our search engine for free.' He also said sharing data would jeopardize users' privacy. The stakes for Google — and the broader tech industry — are enormous. The ad tech trial is scheduled to resume in September. Remedies in the search case are expected near the end of the summer. Meanwhile, regulators around the world are watching closely. Apple CEO Tim Cook said in a Q1 earnings call that an antitrust lawsuit his company is facing — and Google's monopoly suits — cast a specter over the tech industry. Responding to a question on the call about the mounting legal risk, Cook said, 'We're monitoring these closely, but as you point out, there's risk associated with them, and the the outcome is unclear.' If the courts side with the DOJ, it could signal an impending era of aggressive antitrust enforcement — one that doesn't just slap fines on monopolistic platforms but forces them to break apart. For Google, that would mean a dramatic unbundling of the ecosystem it has spent decades building: one where search feeds ads and Chrome ties everything together. For the latest news, Facebook, Twitter and Instagram.
Yahoo
05-05-2025
- Business
- Yahoo
US seeks Google ad business divestiture amid monopoly claims
The US Department of Justice (DoJ) plans to compel Alphabet, Google's parent company, to divest significant segments of its digital advertising business. The development comes after a federal judge found Google's ad operations to constitute an illegal monopoly. According to the DoJ, divestments of Google's ad exchange and publisher ad server businesses are necessary to dismantle its market dominance. During a hearing in a federal court in Virginia, US government lawyer Julia Tarver Wood, as reported by The Guardian, said 'We have a defendant who has found ways to defy' the law, emphasising that the company's past actions undermined its credibility. Wood further argued that simply allowing 'a recidivist monopolist' to continue operating without structural remedies would not be an effective solution to the problem. Google's ad exchange is said to be the largest marketplace for bidding on online ad space, while the publisher ad server is the technology used by online publishers to list and sell ads on their websites. Additionally, the DoJ has proposed that Google be required to share data on real-time ad bidding with competitors. A trial date has been set for 22 September by the US District Judge Leonie Brinkema to review these proposals and Google's counterarguments. In a previous ruling, Judge Brinkema determined that Google had 'wilfully' monopolised the online advertising market through acquisitions and by integrating its ad exchange and publisher server, effectively excluding competitors and undercutting them on pricing. However, the judge dismissed part of the DoJ's case, stating it failed to prove Google unfairly dominated advertiser ad networks. Google has contested the ruling, asserting that it competes with other tech companies such as Meta, Amazon, and TikTok for online ad spending. Google's head of regulatory affairs Lee-Anne Mulholland, according to the Financial Times, said: 'The DoJ's additional proposals to force a divestiture of our ad tech tools go well beyond the court's findings, have no basis in law, and would harm publishers and advertisers.' The antitrust case marks the third such challenge Alphabet has faced recently. Last year, a judge found that Google had developed a monopoly in search by paying Apple over $20bn annually to be the default browser on its devices. The DoJ has since requested Google to sell its Chrome browser and share search data with competitors. "US seeks Google ad business divestiture amid monopoly claims " was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
03-05-2025
- Business
- Yahoo
Google faces September trial over digital ad monopoly as DOJ pushes for breakup
Google faces a September trial after the Justice Department asked a federal judge on Friday to force the Big Tech giant to sell off parts of its monopolistic digital advertising business. US District Judge Leonie Brinkema set the Sept. 22 trial date after hearing initial remedy proposals from the DOJ and Google. Last month, the judge ruled that Google operates two separate illegal monopolies in the digital advertising technology that have 'substantially harmed' customers. DOJ attorneys said Google should divest its publisher ad server business, as well as its lucrative ad-exchange market that connects ad buyers to sellers. The publisher ad servers are used by websites to store and manage their digital ad inventory. Federal attorney Julia Tarver Wood said the forced sale would likely take several years to complete. Google should also be required to share real-time advertising data with its competitors, according to the feds. Google's legal team pushed back in court, arguing that a forced sale was not permitted under the law and that proceeding with the plan would hurt rather than help the digital ad market. In her ruling last month, Brinkema determined that Google damaged online news publishers and US consumers alike by using anticompetitive practices to control the process by which ads are placed on websites. 'In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google's publisher customers, the competitive process, and, ultimately, consumers of information on the open web,' the judge said in her ruling. Google has already vowed to appeal. The digital advertising case is just one legal headache for Google, which was found to have an illegal monopoly over online search in a separate DOJ case. The DOJ has asked US District Judge Amit Mehta to force Google to sell its Chrome web browser in that case, as well as share search data with rivals. Mehta is currently considering the proposal in an ongoing remedy trial, with a final decision expected by August. Both cases have the potential to upend Google's entire business model. With Post wires
The Hindu
03-05-2025
- Business
- The Hindu
Google faces September trial on ad tech antitrust remedies
Alphabet's Google will face a trial in September on antitrust enforcers' proposals to make it sell off part of its advertising technology business to address the company's dominance over tools used by online publishers to sell ads. U.S. District Judge Leonie Brinkema in Alexandria, Virginia, set the trial date on Friday after hearing from Google and the U.S. Department of Justice about potential remedies in the case. Both sides are expected to file detailed proposals on Monday. The DOJ will seek to have Google sell off its ad exchange and publisher ad server business, in a process expected to take several years, said DOJ attorney Julia Tarver Wood. Google lawyer Karen Dunn said the company supported behavioural remedies - such as making real-time bids available to competitors - but that prosecutors cannot legally pursue a bid to force Google to sell parts of its business. Such a move would also harm internet users and encounter a lack of interested buyers, she said. Publisher ad servers are platforms used by websites to store and manage their digital ad inventory. Along with ad exchanges, the technology lets news publishers and other online content providers make money by selling ads. Brinkema ruled in April that Google unlawfully tied publishers' use of its ad exchange to use of its ad server, and enacted anticompetitive policies that were "not in its publisher customers' best interests." The conduct harmed competition, and hurt publishers and ultimately internet users, she said. Google has previously explored selling its ad exchange to appease European antitrust regulators, Reuters reported in September.
Malay Mail
03-05-2025
- Business
- Malay Mail
US pushes to dismantle Google ad tech empire after monopoly verdict
A US judge ruled that Google illegally monopolised digital advertising tools used by website publishers. The government now wants Google to divest parts of its ad business, arguing that behavioural changes alone are not enough. Google denies wrongdoing but offered to share data and accept monitoring, while the judge encouraged mediation before the next trial phase in September. WASHINGTON, May 3 — Google on Friday faced 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. 'We have a defendant who has found ways to defy' the law, US 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 behaviour. 'Leaving a recidivist monopolist' intact is not appropriate to solve the issue, she added. The demand is the second such request by the US 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 US 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. 'Not sufficient' The US 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. 'Behavioural 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. — AFP
