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Google ordered to overhaul global ad empire after judge finds it abused illegal monopoly
Google must change ad tech rules after US judge rules it abused monopoly power.
In brief
Google must change ad tech rules after US judge rules it abused monopoly power. US District Judge Leonie Brinkema ordered Google to overhaul global ad tech rules after finding it unlawfully monopolized ad auctions, requiring transparency and competition. Originally reported by Dailymail.
Google ordered to overhaul global ad empire
US District Judge Leonie Brinkema ordered Google to make significant changes to its online advertising business across the world due to violations of U.S. antitrust laws.
Judge's 106-page ruling on ad tech monopoly
In a 106-page opinion U.S. District Judge Leonie Brinkema said the $4 trillion tech giant must overhaul its rules governing online advertising auctions to allow for 'much-needed competition.'
Judge's remedy for antitrust violations
The judge said the remedies she laid out would be 'sufficient to effectively pry open to competition the ad tech markets that were injured by Google’s unlawful conduct,' and would 'prevent Google from reverting to anticompetitive conduct in these markets.'
Google's illegal monopoly in ad tech
Brinkema found Google violated Sections 1 and 2 of the Sherman Act by 'willfully engaging in a series of anticompetitive acts to acquire and maintain monopoly power,' and by tying together AdX and the tools publishers use to sell ad space.
Impact on publishers and consumers
Those actions 'deprived rivals of the ability to compete' and 'substantially harmed Google’s publisher customers, the competitive process, and ultimately, consumers of information on the open web.'
Google's ad tech monopoly structure
In open-web display advertising Google owns the platforms that publishers use to sell their ad space and the tools that advertisers use to buy it, along with AdX, a stock market-like exchange where the instantaneous transactions occur.
Historical revenue from ad tech
Historically, Google has taken more than 30 cents on the dollar in revenue from each ad passing through that system, including a 20 percent fee from publishers for using AdX.
Required behavioral changes
Google must also share more data, permanently cease practices that publishers had complained kept them locked into using the company's products, and end preferential and discriminatory auction bidding practices that benefitted itself.
Monitor and Technical Committee
Brinkema outlined the establishment of a Monitor and Technical Committee, which will conduct oversight of Google for six years, although that could be extended if it is not in compliance.
Internal antitrust compliance monitor
Google must also appoint an internal antitrust compliance monitor to ensure it sticks to the new rules.
DOJ's stance on ruling
Associate Attorney General Stanley Woodward Jr said the court's ruling was a 'significant victory' for the Department of Justice.
Google's appeal of ruling
Google said it disagreed with Brinkema's original ruling that it violated antitrust laws, and will appeal.
Judge's reasoning on AdX sale
The judge said forcing a sale was 'neither realistic nor needed.'
DOJ's argument for AdX sale
The DOJ had wanted Google to be forced to sell off AdX, arguing the Silicon Valley company could not be trusted to run it.
Judge's global application
In relation to whether the measures in the opinion should apply globally, Google had argued the court 'should not impose an injunction that would operate outside the nation’s borders,' but Brinkema took the opposite view.
Global impact of ruling
She wrote: 'For Google, a worldwide application of the final judgment would entail product changes that are consistent across all regions, in line with its current operations.'
What to remember
US District Judge Leonie Brinkema ordered Google to overhaul global ad tech rules after finding it unlawfully monopolized ad auctions, requiring transparency and competition.
