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Google faces court battle over breakup of ad tech business
TechXploreยท 2025-09-22 08:31
Core Viewpoint - The US government is pushing for the breakup of Google's ad technology business, citing illegal monopoly practices, with a trial set to determine the necessary penalties and changes for Google to comply [1][3][7]. Group 1: Legal Proceedings - This lawsuit marks Google's second legal challenge this year regarding its ad tech operations, following a previous case where a judge rejected a similar government demand [2][8]. - The current trial will focus on Google's ad tech "stack," which includes tools for website publishers and advertisers [2]. - The US Department of Justice (DOJ) argues for Google to divest its ad publisher and exchange operations, along with a proposed 10-year ban on Google operating an ad exchange post-divestiture [4]. Group 2: Google's Defense - Google contends that the DOJ's demands exceed the court's findings and are technically unfeasible, claiming they would harm the market and smaller businesses [4]. - Google's Vice President of Regulatory Affairs stated that the DOJ's case misunderstands the digital advertising landscape, which has evolved with increased competition [5]. Group 3: Previous Legal Context - Earlier this year, a federal judge found Google to be operating an illegal monopoly, leading to this remedy phase of the trial [3][8]. - In a separate case, the DOJ sought to divest Google's Chrome browser, which was deemed crucial for internet access, but this demand was rejected by a judge [9]. - Following the rejection of the Chrome divestment, shares in Google's parent company, Alphabet, increased by over 20% [10]. Group 4: Broader Implications - The ongoing legal challenges against Google are part of a larger bipartisan government initiative targeting major technology companies, with five pending antitrust cases against such firms [10].