Core Viewpoint - Google is facing a trial regarding its digital advertising practices, which have been deemed monopolistic by a U.S. District Judge, potentially leading to significant changes in its advertising business model [2][5]. Group 1: Trial Details - The trial is set to begin in Alexandria, Virginia, focusing on Google's conduct in digital advertising that has harmed competition and affected online publishers' revenue [2]. - The trial will last for two weeks, with the judge expected to issue a ruling on how to restore fair market conditions, although a decision is unlikely before the end of the year [3]. - Google plans to appeal the previous ruling that labeled its ad network as a monopoly, but appeals can only be filed after the remedy is determined [4]. Group 2: Implications for Google - The case, initiated in 2023, threatens Google's extensive digital advertising network, which generates a significant portion of the $305 billion in revenue for its parent company, Alphabet Inc. [5]. - If the Justice Department's proposal is accepted, it may lead to Google being ordered to sell parts of its ad technology, which could disrupt the internet ecosystem according to Google's legal team [6]. - Google asserts that it has already made sufficient changes to its "Ad Manager" system to address the issues raised in the monopoly ruling [7].

Core Viewpoint - Google is required to submit a restructuring plan for its advertising technology business by early November, following a fine of nearly €3 billion (approximately ¥25.16 billion) imposed by the EU, but the plan will not include a complete divestiture as previously demanded by the EU and industry competitors [1] Group 1: Regulatory Actions - The restructuring plan will not involve the sale of Google's advertising management tool Ad Manager, which includes the AdX trading platform and DoubleClick for Publishers [1] - EU antitrust chief Teresa Ribeiro indicated that ensuring fair competition may require Google to divest parts of its advertising technology business, a statement that is less aggressive than the previous demand for the sale of Ad Manager [1] - Google has consistently opposed any calls for asset divestiture [1] Group 2: Financial Implications - The fine imposed on Google was increased by 60% from the initial draft due to repeated violations, bringing the total amount of antitrust fines imposed by the EU over the past decade to nearly €10 billion (approximately ¥83.87 billion) [1] - Google has announced plans to appeal the fine [1]

Core Insights - The relationship between media and Google, previously a strong alliance, is showing signs of strain as both parties seek to adjust their strategies [1][3][12] Group 1: Google's New Initiatives - Google is intensifying recruitment for advertising technology engineers and product managers to develop new tools for media partners, focusing on optimizing Ad Manager and AdX platforms [3] - A new tool called Offerwall has been launched, allowing media to implement a hybrid monetization strategy that combines advertising with content unlocking, which has been positively received by over 1,000 media partners, resulting in an average revenue increase of 9% [3][4][5] Group 2: Challenges and Risks - The rise of AI features, particularly AI previews, has led to a significant increase in zero-click searches, which have risen from 49% in 2019 to 70.2% in Q2 2024, causing a 26% drop in monthly traffic for news websites [6][7] - This decline in traffic has resulted in reduced ad inventory available for sale on Google's platforms, contributing to a $1.57 billion year-over-year decline in Google's advertising business [7][8] Group 3: Media's Response - Media companies are exploring diversified revenue models to reduce reliance on Google, with emerging platforms like ChatGPT and X (formerly Twitter) showing significant increases in traffic through new distribution methods [9] - The introduction of paid crawling services by companies like Cloudflare indicates a shift towards monetizing content access, although the success of this model depends on cooperation between AI companies and regulatory frameworks [10][11] Group 4: Future Outlook - For Google to maintain its leading position in content distribution, it must establish a genuine value-sharing mechanism with media partners, addressing revenue sharing, transparency, and data sharing [12]