Google seeks to keep ad tech business intact as antitrust trial begins
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Google seeks to keep ad tech business intact as antitrust trial begins
"Alphabet's GOOGL-Q Google will seek to avoid a forced sale of part of its online advertising business in its latest faceoff with U.S. antitrust enforcers at a trial starting on Monday in Alexandria, Virginia. The trial is the government's next best shot at curbing what a judge has ruled is Google's monopoly power, after losing a separate bid to make Google sell its Chrome browser earlier this month."
"The U.S. Department of Justice and a coalition of states are seeking to make Google sell its ad exchange, AdX, where online publishers pay Google a 20-per-cent-fee to sell ads in auctions that happen instantly when users load websites. The government also seeks to require Google to make the mechanism that decides the winner of those auctions open source. U.S. District Judge Leonie Brinkema, who will preside over the trial, ruled in April that Google holds unlawful monopolies in web advertising technology."
"The cases against Google are part of a larger bipartisan crackdown by the U.S. on big tech firms, which began during President Donald Trump's first term and includes cases still pending against Meta Platforms META-Q, Amazon AMZN-Q and Apple AAPL-Q. Google says the DOJ's proposal is technically unworkable and would lead to prolonged uncertainty for advertisers and publishers. Google had previously offered to sell AdX, however, during private negotiations to end an EU antitrust investigation, Reuters reported last year."
A U.S. trial in Alexandria, Virginia will determine remedies after a judge ruled Google holds unlawful monopolies in web advertising technology. The Department of Justice and a coalition of states seek to force Google to sell its ad exchange, AdX, which charges publishers a 20% fee and runs instantaneous auctions, and to require the auction-winning mechanism to be open source. Google urges the court to reject or limit such remedies, calling the DOJ proposal technically unworkable and warning of prolonged uncertainty for advertisers and publishers. The case is part of a wider U.S. bipartisan crackdown on major tech firms.
Read at The Globe and Mail
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