US Government Seeks to Break Up Google's Advertising Technology Business Amid Antitrust Concerns - PRESS AI WORLD
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US Government Seeks to Break Up Google's Advertising Technology Business Amid Antitrust Concerns

Credited from: INDIATIMES

  • The U.S. Justice Department seeks to break up Google's ad technology business, marking a significant legal move.
  • Government argues that Google's control over ad tech is dangerous, leaving publishers overly reliant on its services.
  • Judge Leonie M. Brinkema expressed the need for mediation to address the issues effectively.
  • This action follows a separate case targeting Google's search engine and Chrome browser for monopolistic behavior.

The U.S. Justice Department has put forward a request to a federal court to dismantle Google's advertising technology business, a significant action that could reshape the $2 trillion company. During a recent hearing in Virginia, the Department outlined its plan to require Google to divest key components of its online ad system after Judge Leonie M. Brinkema's ruling that the company illegally monopolized parts of the digital advertising market. "To leave Google with 90 percent of publishers beholden to them is, frankly, too dangerous," stated Julia Tarver Wood, the government's lead lawyer, emphasizing the risks involved in maintaining Google's current structure in the ad tech sector, according to nytimes, lemonde, and indiatimes.

The government's appeal marks the second such request in less than a year, aiming to separate essential tools used by online publishers to sell ad space and the technology that connects these publishers with potential advertisers. The court has set a date of September 22 for both parties to present detailed arguments regarding potential remedies following Judge Brinkema's previous ruling. The case unfolds with Google facing allegations that its software products dominate the advertising space on most websites, leaving little opportunity for competition, according to nytimes, lemonde, and indiatimes.

In response to the government's actions, Google has argued against the proposed breakup, claiming that it would contravene legal standards and could disrupt essential privacy and security protections currently offered to users. Google's legal team highlighted potential complications arising from the divestiture, asserting that "very likely completely impossible" scenarios could emerge without significant upheaval in the tech landscape. Instead, Google proposed measures to enhance transparency and modify practices within its auction bidding systems, suggesting alternatives to divestment that could still benefit publishers while maintaining these critical protections, according to nytimes, lemonde, and indiatimes.

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