Google is making a last-ditch effort to fend off a forced breakup of its advertising technology business, as its U.S. antitrust trial comes to an end. The outcome could reshape how the tech giant—and potentially the broader digital ad market—operates. (Investing.com)
What’s the Case About
- In April, U.S. District Judge Leonie Brinkema ruled that Google holds two illegal monopolies in ad tech: its publisher ad server and its ad exchange. (CNBC)
- The Department of Justice (DOJ), joined by several states, is pushing for Google to divest its AdX platform and related tools. (CNBC)
- At the heart of the dispute is Google’s dominant role in the infrastructure websites use to sell ads and how it may be using that power unfairly. (Business Standard)
Google’s Defense Strategy
- Google argues that breaking up its ad business would be technically complicated and could disrupt its services in a way that hurts both publishers and advertisers. (Investing.com)
- Instead of a forced sale, Google proposes behavioral remedies: it says it could make certain ad-auction data more transparent to competitors, end some pricing practices, and refrain from using tactics like “last look” and “first look” that give it an edge. (Ars Technica)
- Google plans to appeal any divestiture ruling, arguing that the DOJ’s demands go beyond what the law and the court’s own findings require. (CNBC)
What’s Next
- The evidentiary phase of the trial wraps up with closing arguments, but the real battle is just beginning: remedies. Judge Brinkema must decide how to restore competition. (Investing.com)
- Expect a long fight ahead: Google has already signaled it will appeal. (Yahoo)
- At the same time, the company faces similar antitrust scrutiny in other areas—for example, in its search business. (Ars Technica)
Why This Is Huge
- Google’s ad tech unit is core to its business model, generating massive revenue from publishers and advertisers alike. (CNBC)
- A forced breakup could significantly alter the ad ecosystem—potentially benefiting smaller ad tech companies and changing how publishers monetize their content.
- The case is a bellwether for how aggressively U.S. regulators will tackle Big Tech, especially given similar cases against other giants.
Bottom Line: As the antitrust trial winds down, Google is fighting hard to keep its ad business under one roof. The judge’s decision on remedies could force one of the biggest structural changes in the digital ad industry.