The U.S. government has called on Google to separate its ad technology operations following a federal judge’s ruling that the company holds an illegal monopoly. During a hearing in Virginia, government lawyer Julia Tarver Wood urged the court to reject Google’s assurances of changed behavior, labeling the tech giant a “recidivist monopolist” incapable of self-regulation.
This marks the second such request aimed at Google, with the U.S. government also seeking the divestment of its Chrome browser in a separate case concerning its search engine operations. Authorities allege Google dominates the market for banner ad services used by creators and small news outlets.
The court session aimed to plan the trial’s next phase, set for September 22, focusing on how best to address the ad market issues identified. Last year, it was argued that most websites rely on Google’s ad software, leaving publishers little choice but to comply with its system and pricing. Judge Leonie Brinkema largely agreed, recently ruling Google has an illegal monopoly over tools utilized by publishers, though some claims regarding advertiser tools were dismissed.
The government proposes that Google divest its ad publisher and exchange businesses, stating behavioral promises aren’t sufficient to prevent future malpractice. Google, on the other hand, insists such a breakup would pose data security risks and proposes agreeing to binding commitments, monitored to build trust among advertisers and publishers.
Judge Brinkema dismissed Google’s argument that divestiture is unwarranted. However, she advised both parties to explore mediation, suggesting a compromise may be more cost-effective and efficient than a prolonged trial. The advertising business at the heart of this case represents only a slice of Google’s massive ad revenue, which funds its widely used free services like Maps, Gmail, and search, while also advancing its investments in artificial intelligence.
