Judge wants to fix Google’s ad tech monopoly before it’s too late
In a pivotal court hearing on Friday, Judge Leonie Brinkema of the Eastern District of Virginia, often referred to as the “Rocket Docket” for its expedited proceedings, listened to final arguments from both the U.S. Department of Justice (DOJ) and Google regarding the tech giant’s alleged monopoly in the digital advertising sector. The DOJ is advocating for significant structural changes, including the potential divestiture of Google’s AdX ad exchange and possibly its publisher ad server, to address what they assert is an illegal monopoly. Conversely, Google contends that only behavioral modifications are necessary to rectify the identified issues, arguing that such changes would suffice without dismantling its existing structures.
Judge Brinkema, who is expected to deliver her ruling next year, acknowledged the urgency of the case, emphasizing that “time is of the essence.” Her previous rulings have already established that Google holds an illegal monopoly in two key ad tech markets and has improperly tied together its tools, which raises significant concerns about competitive fairness. Notably, she expressed awareness of the likelihood that Google would appeal any ruling against it, suggesting that the DOJ’s proposed remedies might become less enforceable during the appeal process. In contrast, she noted that behavioral changes could be implemented more rapidly, potentially providing a quicker resolution to the competitive issues at hand.
This case is particularly significant in light of recent judicial outcomes in similar antitrust matters, such as the DOJ’s failed attempt to challenge Meta’s monopolistic practices. Timing played a crucial role in that case, as the competitive landscape shifted dramatically between the filing and the trial, with TikTok emerging as a formidable competitor. The DOJ’s decision to file the Google case in the fast-tracked Eastern District was likely influenced by these dynamics, aiming to prevent a similar fate and ensure that the rapidly evolving digital ad marketplace does not further entrench Google’s dominance. As the legal battle unfolds, the implications of Judge Brinkema’s ruling could have far-reaching effects on the future of digital advertising and competition in the tech industry.
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Google and the Justice Department had their last chance to make their case before Judge Leonie Brinkema Friday before she decides
whether Google needs to be broken up
to remedy its ad tech monopoly.
Brinkema expects to issue her ruling next year, but understands that “time is of the essence,” as
Reuters
reported
. While the DOJ wants the court to force Google to sell its AdX exchange, and leave open the option to force a sale of its publisher ad server, Google argued that only behavioral changes were necessary to remedy the issues the court found with its business. Brinkema previously ruled that Google held an illegal monopoly in two ad tech markets and illegally tied together two of its tools.
She was keenly aware that Google will likely appeal the case and noted the DOJ’s remedies “most likely would not be as easily enforceable while an appeal is pending,”
Reuters
reported. On the other hand, she said, behavioral changes could happen quickly,
The New York Times
reported
.
Timing was a crucial factor in another judge’s recent
decision to rule against the government’s case accusing Meta
of being an illegal monopolist. When the case was filed in 2020, TikTok was a far smaller rival than it was when the case went to trial earlier this year. Of course, that’s part of the reason the DOJ filed the Google ad tech case in the Eastern District of Virginia in the first place — otherwise known as the “
Rocket Docket
.”
