The US government sought to force Google to divest itself of its Chrome browser, but that operation failed. Now a new lawsuit is underway in which the AdX advertising platform is at stake for both parties.
The US Department of Justice and a coalition of states are demanding the sale of AdX. This platform enables publishers to sell advertising space through auctions that take place within milliseconds. Google charges a 20 percent commission for this. The Justice Department also wants Google to make the auction system open source, so that it is clear exactly how the winner is determined.
Julia Tarver Wood of the Justice Department’s antitrust team said in her opening statement, quoted by Reuters, that “leaving Google with the motive and the means to recreate that tie is simply too great a risk.”
Judge Leonie Brinkema ruled earlier in August that Google illegally linked its AdX advertising exchange to its publisher platform, creating an unlawful monopoly in web technology for advertising. Now the company faces a new legal battle in which it is trying to retain AdX.
Familiar defense strategy
Google lawyer Karen Dunn called the proposals “radical and reckless.” She said they would harm competition by removing Google from the market. “The DOJ would reserve to itself broad and unparalleled power, control and leverage over a major American technology platform.”
The arguments are now familiar. Many were already mentioned in the lawsuit that received a ruling in early September. Earlier this month, Google was allowed to keep Chrome despite previous demands from the Department of Justice. Google previously argued that it is the only one that can maintain the browser due to the complex integrations within its own ecosystem.
Impact on publishers and the market
Grant Whitmore of media group Advance Local, owner of local news sites, testified that Google’s ownership of advertiser and publisher services plus AdX “offers a lot of opportunities for Google to continue to put their thumb on the scale.” He even advocates a more far-reaching remedy: in addition to AdX, Google should also sell its publisher platform.
Google is proposing policy changes that would help competing platforms instead of divesting AdX. The Department of Justice considers this solution insufficient and points out that the facts in this case differ significantly from the Chrome case.
Broader context
This case is part of a US government offensive against Big Tech. The campaign began under President Trump and also includes cases against Meta, Amazon, and Apple. It illustrates that both US political parties find Google’s dominance problematic. This is also one of the few continuations of policy under President Biden.
Google reported last year that its advertising revenue was driven by platform integrations. The loss of AdX would be a direct blow to its entire business model. Google had previously proposed selling AdX during private negotiations with the EU, as Reuters reported last year.
The proceedings will continue until the end of January. A ruling is likely to follow within a few months.