Google is set to defend its advertising technology business in court, with the company aiming to prevent a potential forced break-up.Â
On Friday, Google will ask U.S. District Judge Leonie Brinkema to reject the idea of dismantling its advertising tools, which are central to the digital ad ecosystem.
The case focuses on the competition within the market for ad tech services used by website publishers to sell online ads. At the hearing in Alexandria, Virginia, Judge Brinkema will consider the possible remedies to restore fair competition in the sector, with more detailed discussions to follow on specific actions.
Google is working hard to avoid the drastic move of selling off its advertising assets, hoping to head off a situation like another ongoing case in Washington, where the Department of Justice is seeking the sale of Google’s Chrome browser to combat its online search monopoly.
In the ad tech case, the U.S. Department of Justice is pushing for the sale of Google’s Google Ad Manager, a key tool in the company’s ad server and ad exchange operations.
Google’s publisher ad servers help websites store and manage ad inventory, while ad exchanges enable content creators to sell those ads. These tools, integral to how ads are sold across the internet, have raised antitrust issues.
Earlier this year, Judge Brinkema ruled that Google had violated antitrust laws by linking its ad exchange with its ad server, a practice that stifled competition and harmed publishers. She acknowledged that this anti-competitive conduct was detrimental not only to publishers but also to the global online ecosystem, ultimately affecting users.
Despite this, Google argues that breaking up its ad tech business is not the right solution, claiming that such a move could hurt innovation and consumers alike.
The company’s defence rests on the assertion that users continue to choose Google because it provides a better product, not because of coercion or unfair advantage.
They are particularly keen to avoid a scenario where they are forced to divest parts of their business, which Google believes could lead to greater harm in the long run.
Interestingly, Google has also been exploring ways to address regulatory concerns outside the United States.
It has previously considered selling its ad exchange in order to satisfy antitrust regulators in Europe, underscoring the broader international nature of the competition cases it faces.
