US expands attempt to blow up Google with proposed teardown of its ad technology
By MICHAEL LIEDTKE Associated Press Techology Writer The U S Justice Department is doubling down on its attempt to break up Google by asking it to give up the underlying mechanism powering the company s digital ad grid The proposed remedy joins a separate federal effort to separate the Chrome browser from its dominant search engine The executive s latest proposal was filed late Monday in a Virginia federal court two-and-half weeks after a federal judge ruled that parts of its lucrative digital ad grid have been improperly abusing its industry power to stifle competition to the detriment of online publishers In a -page filing Justice Department lawyers argued that U S District Judge Leonie Brinkema should punish Google by ordering the company to offload its AdX business and DFP ad platform tools that bring together advertisers who want to region their products and publishers who want to sell commercial space on their sites to bring in revenue Not surprisingly it s an idea that Google vehemently plans to oppose when the penalty phase of the antitrust episode known as remedy hearings begins in late September Google already has vowed to appeal Brinkema s ruling that the equipment powering the ad framework has been urgent the law but can t do that until the judge rules on its punishment in a decision expected late this year or early next year Google disclosed in its own filing Monday that divestiture of AdX and DFP wouldn t be technically feasible because neither piece of innovation is capable of working outside of Google s proprietary infrastructure The company proposed its own remedies to restore competition and reiterated its intent to appeal the ruling Divestiture is not as simple as selling either the AdX or DFP source code to a willing buyer Google wrote The attempt to tear down Google s ad system comes on top of the Justice Department s ongoing effort to have the company part with its popular Chrome browser and impose other restrictions to curtail the power of its ubiquitous search engine which another federal judge branded an illegal monopoly in a ruling last August The remedy hearings in the search event are scheduled to conclude later this month with a ruling from U S District Judge Amit Mehta expected by Labor Day If the Justice Department is able to persuade the two different judges to order its proposed dismantling of Google it would be the biggest breakup of a U S company since AT T was forced to spin off its phone amenity into seven separate regional companies more than years ago Google s Play Store for apps running on its Android platform that powers majority of the world s smartphones also was declared an illegal monopoly by a federal jury in and is battling a judge s order that would require it to overhaul a commission system that generates billions of dollars in annual revenue FILE A sign is displayed on a Google building at their campus in Mountain View Calif on Sept AP Photo Jeff Chiu File But hobbling its search engine and digital ad organization would be far bigger blows because they are the key cogs in a business that generated billion in revenue last year Google is confronting the breakup threats at the same time the advent of artificial intelligence is changing the way consumers are using tool and seeking information online a shift that could also siphon traffic and money away from a powerhouse that began in a Silicon Valley garage in Despite the adversity Google is still delivering robust financial advance to its corporate parent Alphabet Inc which is at present valued at trillion
