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Expanding its efforts to dismantle Google, the U.S. proposes a disjoint of its ad technology.

Justice Department Intensifies Google Breakup Attempt: Pushes for Forced Divestiture of Ad Network Technology and Potential Separation of Chrome Browser.

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Expanding its efforts to dismantle Google, the U.S. proposes a disjoint of its ad technology.

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The U.S. Justice Department is ramping up its crusade against Google, proposing a split of the tech giant's digital ad network. This move comes hot on the heels of a federal court's ruling that Google's lucrative digital ad empire has been misusing its market supremacy to quash competition, damaging online publishers in the process.

In a bold, 17-page filing, the Justice Department's lawyers argued for harsh penalties, proposing that U.S. District Judge Leonie Brinkema compels Google to sell off its AdX business and DFP ad platform - tools that connect advertisers and publishers to generate revenue.

The Government's aggressive stance doesn't end there. They're also advocating for a 10-year ban on Google operating a digital ad exchange. Such a move aims to weaken the power of a "serial monopolist."

Google, predictably, intends to challenge this latest salvo during the penalty phase of the antitrust case, scheduled for late September. Already, Google has vowed to appeal Brinkema's initial ruling, which deemed the technology powering the ad network as unlawful, although they can't do so until Brinkema orders her ruling on the penalty.

In its rebuttal, Google proposed a plan aimed at boosting transparency in its ad network and fostering competition. This plan includes the appointment of a trustee to oversee Google's behavior for three years.

This push to dismantle Google's ad network is in addition to the Justice Department's ongoing efforts to force Google to relinquish its popular Chrome browser and impose other restrictions to check the power of its omnipresent search engine. The remedy hearings for the search case are slated to conclude by the end of August, with a decision from Judge Amit Mehta expected by Labor Day.

If successful, the Justice Department's proposed breakup of Google would mark the largest disintegration of a U.S. company since AT&T was forced to spin off its telephone services into seven regional companies over 40 years ago. Google's Play Store, too, was declared an illegal monopoly by a federal jury in 2023 and is currently battling a judge's order that would require it to revamp a commission system generating billions in annual revenue.

Disintegrating Google's search engine and digital ad network would deal significant blows as these segments are the mainstay of a business that generated $265 billion in revenue last year. Google is facing these challenges at a time when artificial intelligence is drastically altering how consumers interact with technology and seek information online.

Despite these setbacks, Google continues to deliver robust financial growth to its parent company, Alphabet Inc., which boasts a valuation of $2 trillion. Alphabet's shares dipped slightly during Tuesday's trading.

Enrichment Insights:- The proposed dismantling of Google's digital ad network is part of a series of actions taken by the Justice Department to tackle Google's monopoly in the digital advertising market.- The remedy phase of the antitrust case, scheduled for September 2025, will likely see the Justice Department pushing for divestiture of parts of Google's ad tech business to address the monopoly.- The precise structure and terms of the proposal for dismantling or restructuring Google's digital ad network are not widely available, with the focus currently on the upcoming remedy phase. Likely considerations include divestiture, structural changes, and regulatory oversight.

  1. The U.S. Justice Department vehemently requires Google to sell off its AdX business, an essential tool in Google's digital ad network, as part of its antitrust case.
  2. The tech industry, including the world of finance and business, is closely watching the antitrust case against Google, as its resolution could set new antitrust laws for the tech industry and the internet.
  3. If successful, the breakup of Google's digital ad network would require the company to redistribute billions in revenue generated by this segment annually.
  4. Google's lawyers have announced plans to challenge the Government's proposal in the penalty phase of the antitrust case scheduled for late September.
  5. The proposed antitrust lawsuits in the tech world, such as the one against Google, could have far-reaching implications for the antitrust laws governing the tech industry, particularly in the areas of digital advertising and tech platforms like the Chrome browser.
  6. In the wake of these antitrust lawsuits and their potential impact on technology companies like Google, the world anticipates significant changes in the tech industry, sparking new debates about competition, innovation, and consumer protection.
  7. The proposed antitrust laws against Google could lead to a restructuring of the tech landscape, potentially opening doors for new entrants in the digital advertising market and fostering competition in the industry.
  8. The Government's antitrust efforts against Google are also aimed at addressing the alleged anticompetitive business practices that have given Google an unfair advantage in the digital advertising market, which has affected other internet businesses and publishers negatively.
U.S. Justice Department Increases Efforts to Disintegrate Google's Digital Ad Network by Requesting a Federal Court Order; Chrome Browser Separation Efforts Also Ongoing

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