Google to challenge US govt over alleged digital ad monopoly in court

In Alexandria, Virginia, Google and US Justice Department lawyers face off in closing arguments over the complex tech distributing millions of digital ads daily across the internet

Google will confront the US government's latest attempt to topple its internet empire in federal court on Friday as a judge considers how to prevent the abusive tactics that culminated in parts of its digital ad network being branded as an illegal monopoly.

The courtroom showdown in Alexandria, Virginia, will pit lawyers from Google and the US Department of Justice against each other in closing proceedings focused on the complex technology that distributes millions of digital ads across the internet each day.

After a lengthy trial last year, US District Judge Leonie Brinkema ruled in April that pieces of Google's ad technology had been rigged in a way that made it an illegal monopoly. That set up another 11-day trial earlier this fall to help Brinkema determine how to remedy its anti-competitive practices.

Friday's closing arguments will give both Google and the Justice Department a final chance to sway Brinkema before she issues a ruling that probably won't come until early next year.

The Justice Department wants Brinkema to force Google to sell some of the ad technology that it has spent nearly 20 years assembling, contending a breakup is the only way to rein in a company that the agency's lawyers condemned as a recidivist monopolist in filings leading up to Friday's hearing.

The condemnation refers not only to Google's practices in digital advertising but also to the illegal monopoly that it unleashed through its dominant search engine. Federal prosecutors also sought a breakup in the search monopoly case, but the judge handling that issue rejected a proposal that would have required Google to sell its popular Chrome web browser.

Although Google is still being ordered to make reforms that it's resisting, the outcome in the search monopoly case has been widely seen as a proverbial slap on the wrist. The belief that Google got off easy in the search case is the main reason the market value of its parent company, Alphabet, surged by about USD 950 billion, or 37 per cent, to nearly USD 3.5 trillion since US District Judge Amit Mehta's decision came out in early September.

That setback hasn't discouraged the Justice Department from arguing for a breakup of an ad tech system that handles 55 million requests per second, according to estimates provided by Google in court filings.

The huge volume of digital ads priced and distributed through Google's technology is one of the main reasons that the company's lawyers contend it would be too risky to force a dismantling of the intricate system.

This is technology that absolutely has to keep working for consumers, Google argues in documents leading up to Friday's hearing. The company's lawyers blasted the Justice Department's proposal as a package of legally unprecedented and unsupported divestitures.

Besides arguing that its own proposed changes will bring more price transparency and foster more competition, Google is also citing market upheaval triggered by artificial intelligence as another reason for the judge to proceed cautiously with her decision.

In his decision in the search monopoly case, Mehta reasoned that AI was already posing more competition to Google.

But the Justice Department urged the judge to focus on the testimony from a litany of trial witnesses who outlined why Google shouldn't be trusted to change its devious behaviour.

The witnesses explained how Google can manipulate computer algorithms that are the engine of its monopolies in ways too difficult to detect, the Justice Department argued in court papers.