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Google Faces Court Battle Over Breakup Of Ad Tech Business

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Google faces a fresh federal court test on Monday as US government lawyers ask a judge to order the breakup of the search engine giant’s ad technology business.

The lawsuit is Google’s second such test this year after the California-based tech juggernaut saw a similar government demand to split up its empire shot down by a judge earlier this month.

Monday’s case focuses specifically on Google’s ad tech “stack” — the tools that website publishers use to sell ads and that advertisers use to buy them.

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In a landmark decision earlier this year, Federal Judge Leonie Brinkema agreed with the US Department of Justice (DOJ) that Google maintained an illegal grip on this market.
Monday’s trial is set to determine what penalties and changes Google must implement to undo its monopoly.

According to filings, the US government will argue that Google should spin off its ad publisher and exchange operations. The DOJ will also ask that after the divestitures are complete, Google be banned from operating an ad exchange for 10 years.

READ ALSO:Google Fined $36m In Australia Over Anticompetitive Search Deals

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Google will argue that the divestiture demands go far beyond the court’s findings, are technically unfeasible, and would be harmful to the market and smaller businesses.

We’ve said from the start that DOJ’s case misunderstands how digital advertising works and ignores how the landscape has dramatically evolved, with increasing competition and new entrants,” said Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs.

In a similar case in Europe, the European Commission, the EU’s antitrust enforcer, earlier this month fined Google 2.95 billion euros ($3.47 billion) over its control of the ad tech market.
Brussels ordered behavioral changes, drawing criticism that it was going easy on Google as it had previously indicated that a divestiture may be necessary.

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This remedy phase of the US trial follows a first trial that found Google operated an illegal monopoly. It is expected to last about a week, with the court set to meet again for closing arguments a few weeks later.

READ ALSO:Perplexity AI Makes $34.5bn Surprise Bid For Google’s Chrome Browser

The trial begins in the same month that a separate judge rejected a government demand that Google divest its Chrome browser, in an opinion that was largely seen as a victory for the tech giant.

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That was part of a different case, also brought by the US Department of Justice, in which the tech giant was found responsible for operating an illegal monopoly, this time in the online search space.
Instead of a major breakup of its business, Google was required to share data with rivals as part of its remedies.

The US government had pushed for Chrome’s divestment, arguing the browser serves as a crucial gateway to the internet that brings in a third of all Google web searches.
Shares in Google-parent Alphabet have skyrocketed by more than 20 percent since that decision.

Judge Brinkema has said in pre-trial hearings that she will closely examine the outcome of the search trial when assessing her path forward in her own case.

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These cases are part of a broader bipartisan government campaign against the world’s largest technology companies. The US currently has five pending antitrust cases against such companies.

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Antitrust Trial: US Asks Court To Break Up Google’s Ad Business

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Google faces a fresh federal court test on Monday as US government lawyers ask a judge to order the breakup of the search engine giant’s ad technology business.

The lawsuit is Google’s second such test this year, following a similar government demand to split up its empire that was shot down by a judge earlier this month.

Monday’s case focuses specifically on Google’s ad tech “stack” — the tools that website publishers use to sell ads and that advertisers use to buy them.

Advertisement

In a landmark decision earlier this year, Federal Judge Leonie Brinkema agreed with the US Department of Justice (DOJ) that Google maintained an illegal grip on this market.

READ ALSO:Google Fined $36m In Australia Over Anticompetitive Search Deals

Monday’s trial is set to determine what penalties and changes Google must implement to undo its monopoly.

Advertisement

According to filings, the US government will argue that Google should spin off its ad publisher and exchange operations. The DOJ will also ask that after the divestitures are complete, Google be banned from operating an ad exchange for 10 years.

Google will argue that the divestiture demands go far beyond the court’s findings, are technically unfeasible, and would be harmful to the market and smaller businesses.

We’ve said from the start that DOJ’s case misunderstands how digital advertising works and ignores how the landscape has dramatically evolved, with increasing competition and new entrants,” said Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs.

Advertisement

READ ALSO:Google Introduces Initiative To Equip 1,000 Nigerian Developers

In a similar case in Europe, the European Commission, the EU’s antitrust enforcer, earlier this month fined Google 2.95 billion euros ($3.47 billion) over its control of the ad tech market.

Brussels ordered behavioral changes, drawing criticism that it was going easy on Google as it had previously indicated that a divestiture may be necessary.

Advertisement

This remedy phase of the US trial follows a first trial that found Google operated an illegal monopoly. It is expected to last about a week, with the court set to meet again for closing arguments a few weeks later.

The trial begins in the same month that a separate judge rejected a government demand that Google divest its Chrome browser, in an opinion that was largely seen as a victory for the tech giant.

That was part of a different case, also brought by the US Department of Justice, in which the tech giant was found responsible for operating an illegal monopoly, this time in the online search space.

Advertisement

READ ALSO:Iran Hackers Target Harris And Trump Campaigns – Google

Instead of a major breakup of its business, Google was required to share data with rivals as part of its remedies.

The US government had pushed for Chrome’s divestment, arguing the browser serves as a crucial gateway to the internet that brings in a third of all Google web searches.

Advertisement

Shares in Google-parent Alphabet have skyrocketed by more than 20 percent since that decision.

Judge Brinkema has said in pre-trial hearings that she will closely examine the outcome of the search trial when assessing her path forward in her own case.

These cases are part of a broader bipartisan government campaign against the world’s largest technology companies. The US currently has five pending antitrust cases against such companies.

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Peru Anti-government Protesters Clash With Police

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Hundreds of anti-government protesters clashed with police in the Peruvian capital Lima on Saturday, throwing stones and sticks as officers fired tear gas on the demonstrators, AFP journalists reported.

The protest, organized by a youth collective called “Generation Z”, is part of growing social unrest in Peru against organized crime, corruption in public office, and a recent pension reform.

“Today, there is less democracy than before. It’s getting worse… because of fear, because of extortion,” said 54-year-old protester Gladys, who declined to give her last name.

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Around 500 people gathered in the city center, under heavy police presence.

READ ALSO:FULL TEXT: US Govt Releases Text Messages Between Charlie Kirk’s Suspect, Roommate

Congress has no credibility, it doesn’t even have the approval of the people… It is wreaking havoc in this country,” said protester Celene Amasifuen.

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The clashes broke out as demonstrators tried to approach executive and congressional buildings in Lima.

The radio station Exitosa said that its reporter and a cameraman were hit by pellets, commonly fired by law enforcement.

READ ALSO:‘Over 7,000 Nigerians Sought Asylum In Sweden In 24 Years’

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Police said at least three officers were wounded.

Approval ratings for President Dina Boluarte, whose term ends next year, have plummeted amid rising extortion and organized crime cases.

Several opinion polls show the government and conservative-majority Congress are seen by many as corrupt institutions.

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This week, the legislature passed a law requiring young adults to join a private pension fund, despite many facing a precarious working environment.

AFP

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Fresh World Trouble Looms As Netanyahu Tells Western Leaders ‘There Will Be No Palestinian State’

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Israeli Prime Minister Benjamin Netanyahu on Sunday said there would be no Palestinian state, in a message addressed to the leaders of Britain, Australia and Canada after they recognised Palestinian statehood.

“I have a clear message for those leaders who recognise a Palestinian state after the horrific massacre on October 7: you are granting a huge reward to terror,” he said.

And I have another message for you: it will not happen. No Palestinian state will be established west of the Jordan River.”

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READ ALSO:Israel Begins Ground Offensive In Gaza Despite International Criticism

Britain, Australia and Canada on Sunday became the first tripartite Western nations to recognise a Palestinian state.

Britain and Canada became the first G7 countries to take the step, with France and other nations expected to follow at the annual UN General Assembly, which opens Monday in New York.

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Today, to revive the hope of peace for the Palestinians and Israelis, and a two-state solution, the United Kingdom formally recognises the State of Palestine,” UK Prime Minister Keir Starmer said in a message on X.

READ ALSO:Palestinians Flee As Israel Intensifies Assault On Gaza City

Canada recognises the State of Palestine and offers our partnership in building the promise of a peaceful future for both the State of Palestine and the State of Israel,” Canadian Prime Minister Mark Carney wrote on X.

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This comes after decades of requests for sovereignty from the Palestinian side.

Portugal was also to recognise Palestinian statehood later Sunday, as Israel came under huge international pressure over the war in Gaza triggered almost two years ago by the October 7, 2023, Hamas attack.

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