Google Faces Landmark Legal Battle: DOJ Seeks Major Overhaul in Ad and Browser Operations

Recently, Alphabet Inc.'s Google has been found guilty of illegally monopolizing key areas of the internet by two separate federal court rulings. The U.S. Department of Justice (DOJ) may now push Google to make substantial changes to its advertising operations, potentially forcing the company to divest crucial technology assets, such as the ad exchange platform responsible for brokering online ad transactions. This move aims to curb Google's dominance over the monetization models of independent internet publishers. In a separate case, Google may be required to divest its Chrome browser.

These cases, although separate, both proceed simultaneously and pose a complex challenge for the government in crafting remedial measures. This monumental endeavor to reshape the business segments of this global tech giant is expected to span months or possibly years. Vanderbilt law professor Rebecca Allensworth noted the rarity of such large-scale split cases being overseen by different judges, highlighting the unique judicial challenges.

The court has scheduled a three-week hearing to deliberate on potential remedies for Google's previously determined monopoly on online search, originally judged in a ruling last year. District Judge Amit Mehta, responsible for the ruling, indicated that a decision on the remedies might come before August. Allensworth suggested that this ruling could influence any remediation proposals for the separate ad case decided by Judge Leonie Brinkema.

Following an April 17 verdict against Google, the company declared its intention to appeal certain aspects of the judgment. U.S. DOJ representatives did not comment directly on the ongoing remedy procedures. However, Assistant Attorney General Gail Slater remarked that Google has been identified as a monopolist abusing its market power, underlining the department's position on the matter.

The DOJ cannot impose financial penalties in civil antitrust cases, meaning that any resolution or settlement must entail significant adjustments to Google's operations. Despite the back-to-back courtroom losses faced by Google, the company may still attempt to negotiate settlements, although terms will undoubtedly be stringent.

In the April ruling, Judge Brinkema concluded that Google monopolized the markets for ad exchanges and ad servers but stopped short of labeling it a monopolist in tools used for purchasing display ads. As discussions in Mehta's courtroom continue, the DOJ is pushing for a broader competitive restructuring, including potential divestiture of Chrome and licensing changes for Google's search data. The resolution of these cases will likely continue to unfold over several years, with a protracted appeals process potentially delaying any immediate impact.