Google Takes on US Government in Digital Ad Monopoly Battle
Google is set to face off against the US government’s recent effort to dismantle its internet dominance in federal court on Friday, as a judge deliberates on measures to curb the abusive practices that led to segments of its digital advertising network being labeled an illegal monopoly. The courtroom showdown in Alexandria, Virginia, will feature lawyers from Google and the US Department of Justice in closing proceedings that center on the intricate technology responsible for distributing millions of digital ads across the internet daily. Following an extensive trial last year, US District Judge Leonie Brinkema determined in April that elements of Google’s advertising technology had been manipulated, resulting in an illegal monopoly. That initiated another 11-day trial earlier this fall to assist Brinkema in deciding how to address its anti-competitive practices.
On Friday, the closing arguments will provide both Google and the Justice Department with a final opportunity to influence Brinkema before she delivers a ruling that is likely to be announced early next year. The Justice Department is urging Brinkema to compel Google to divest certain ad technology that it has been developing for nearly two decades, arguing that a breakup is the sole solution to curb a company that the agency’s lawyers have labeled a recidivist monopolist in documents submitted prior to Friday’s hearing. The condemnation addresses not only Google’s practices in digital advertising but also the illegal monopoly that it has established through its dominant search engine. Federal prosecutors also sought a breakup in the search monopoly case, but the judge handling that issue rejected a proposal that would have required Google to sell its popular Chrome web browser.
Despite ongoing orders for reforms that Google is resisting, the outcome in the search monopoly case has been largely perceived as a mere slap on the wrist. The perception that Google received a favorable outcome in the search case is the primary factor behind the approximately USD 950 billion, or 37 per cent, increase in the market value of its parent company, Alphabet, bringing it close to USD 3.5 trillion since US District Judge Amit Mehta’s ruling was issued in early September. The Justice Department remains undeterred by that setback, continuing to advocate for the dismantling of an ad tech system that processes an estimated 55 million requests per second, as indicated by Google in court documents. The substantial volume of digital advertisements priced and distributed via Google’s technology is a primary argument put forth by the company’s lawyers, who assert that dismantling the complex system would pose significant risks.
According to documents leading up to Friday’s hearing, Google asserts that this technology must consistently function for consumers. The company’s lawyers criticized the Justice Department’s proposal, describing it as a collection of legally unprecedented and unsupported divestitures. In addition to asserting that its proposed changes will enhance price transparency and encourage greater competition, Google is also referencing the market disruption caused by artificial intelligence as a further rationale for the judge to exercise caution in her decision-making. In his ruling regarding the search monopoly case, Mehta articulated that AI was already presenting greater competition to Google. However, the Justice Department implored the judge to concentrate on the accounts provided by numerous trial witnesses who detailed the reasons Google cannot be relied upon to amend its deceptive practices. The witnesses detailed how Google can manipulate computer algorithms, which serve as the engine of its monopolies, in ways that are challenging to detect, as argued by the Justice Department in court documents.
