OMI Urges Court to Require Google Divestitures in Ad Tech Monopoly Case
“Recently, Judge Amit Mehta chose not to solve the problem of Google’s monopoly over search. We can only hope that Judge Brinkema will impose effective remedies to end Google’s ad tech monopoly.”
Today, the Open Markets Institute submitted an amicus brief in United States v. Google, urging the court to order Google to divest part of its advertising technology businesses to restore competition and to protect publishers, advertisers, and the public.
In April, Judge Leonie Brinkema of the Eastern District of Virginia concluded that Google illegally monopolized two critical digital advertising markets—ad exchange and publisher ad server. In addition to other remedies, the U.S. government and seventeen states are seeking structural relief, including divestitures.
In its brief, Open Markets explains that:
Courts have a duty not just to stop illegal conduct, but also to “undo what the conspiracy achieved” and “pry open the doors of competition.”
Divestiture is a traditional and effective antitrust remedy, recognized by the Supreme Court as the best way to eliminate monopolistic control.
In cases like this, behavioral remedies alone are insufficient because they are temporary, difficult to enforce, and do not foster the return of competition. We should learn our lesson from United States v. Microsoft which stands out as a cautionary tale of what happens when remedies are weak and fail to restore competition.
Without divestiture, Google will remain free to exploit its monopoly power, and the government risks winning the battle but losing the war.
“To ensure the digital advertising market works for publishers, advertisers, and consumers—not just Google—the court must act decisively,” said Tara Pincock, the Open Markets Institute’s Policy Counsel. “Anything less than full divestiture of Google’s ad exchange (AdX) and publisher ad server (DFP) will leave the public vulnerable to continued abuses of monopoly power.
“Recently, Judge Amit Mehta chose not to solve the problem of Google’s monopoly over search. We can only hope that Judge Brinkema will impose effective remedies to end Google’s ad tech monopoly.”