Why US government wants to break up Google's ad tech
What's the story
Google is gearing up for a major legal battle as the US government pushes for the break up of its advertising technology business. The trial, which just kicked off in Alexandria, Virginia, is part of a wider effort by the Department of Justice (DOJ) and several states to tackle Google's alleged monopoly in online advertising. The case will be closely watched by rival ad tech developers and online publishers who have separately sued Google for damages.
Legal strategy
DOJ wants Google to sell AdX
The US government wants Google to sell its ad exchange, AdX. This is where online publishers pay a 20% fee to sell ads in real-time auctions when users open websites. The DOJ also wants Google to make the algorithm that determines auction winners open-source. However, Google has argued that these proposals are technically unworkable and would create prolonged uncertainty for advertisers and publishers.
Antitrust allegations
Google forces publishers into using its publisher ad server: DOJ
The DOJ has also accused Google of locking publishers into using its publisher ad server by unlawfully tying the platform to Google AdX. This, they say, allowed Google to engage in practices that were not in publishers' interests. If the DOJ's proposals don't restore competition within four years, they want Google to sell its publisher ad server.
Trial proceedings
Judge will decide on remedies after trial
US District Judge Leonie Brinkema, who will preside over the trial, had ruled in April that Google holds unlawful monopolies in web advertising technology. After this week's trial, she will decide what remedies to impose on the company. Google has asked Brinkema to take a cautious approach like another judge in Washington DC who recently rejected most of the DOJ's proposals in a separate case over Google's monopoly in online search.
Testimonies expected
Trial to hear from competing platforms and publishers
Instead of selling AdX, Google has now proposed changing its policies to make it easier for publishers to use and support competing platforms. The DOJ has said such requirements alone are not enough to restore competition. The trial is expected to hear from former News Corp executive and executives at DailyMail.com and Advance Local, which runs local news outlets in eight states.