US government wants to dismantle Google’s advertising empire

US Department of Justice wants to dismantle search giant's advertising technology by separating publishing and exchange activities

Life

Image: Bernd von Jutrczenka via dpa

The US government claims that Google illegally dominates this market through its ad tech stack, which includes the tools website publishers use to sell ads and advertisers use to buy them.

Earlier this year, federal judge Leonie Brinkema sided with the US Department of Justice (DoJ) and found that Google held an illegal monopoly in this area.

The DoJ is expected to push for a major restructuring: the separation of Google’s ad publishing and ad exchange operations into distinct entities. It will also demand a 10-year ban on Google operating an ad exchange after these divestitures.

On the other hand, Google maintains that the proposed sanctions go beyond the court’s findings, are technically unfeasible, and would ultimately harm the market, especially small businesses. Google’s vice president of regulatory affairs, Lee-Anne Mulholland, argues that the DoJ misinterprets the complexity of digital advertising and overlooks increased competition and the emergence of new players in the space.

This round of appeals follows an earlier lawsuit in which Google was found guilty of exploiting an illegal monopoly. The proceedings are expected to last about a week, with closing arguments scheduled for a few weeks later.

Business AM

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