US Demands Google Break Up Ad Tech Business After Monopoly Ruling
US Demands Google Break Up Ad Tech Business After Monopoly Ruling

The US government has called for Google to be broken up over its dominance of the online advertising market, marking the second antitrust demand against the tech giant in less than a year. In a federal court in Virginia, government lawyer Julia Tarver Wood argued that Google had repeatedly found ways to defy the law and that leaving a 'recidivist monopolist' intact was not appropriate.

The demand follows a ruling by Judge Leonie Brinkema that Google held an illegal monopoly over ad software and tools used by publishers. 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 plaintiffs argued that most websites use Google ad software products, leaving publishers with no way to escape its technology and pricing.

The government is seeking the divestment of Google's ad publisher and exchange operations, arguing that behavioural remedies would be insufficient. 'You can't prevent Google from finding a new way to dominate,' Tarver Wood said. This is the second such request from the US, which is also calling for the sale of Google's Chrome browser in a separate case over its search engine business.

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Google countered by offering binding commitments to share information with advertisers and publishers on its ad tech platforms, and accepted monitoring to address trust issues. However, Judge Brinkema swiftly rejected Google's argument that divestment was inappropriate. She urged both sides to mediate, stressing that a compromise would be more cost-effective than a lengthy trial. The second phase of the trial is set for September.

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