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MLex Market Insight

How Google’s high-stakes, state-based courtroom clashes could culminate in divestiture

MLex Market Insight

MLex Market Insight

News

4.99 Ratings

🗓️ 3 February 2023

⏱️ 14 minutes

🧾️ Download transcript

Summary

Google has found itself fighting essentially the same battle in two different courts against two different coalitions of enforcers. In so doing, the search giant is exposing itself to a potential court loss that could see it forced to divest parts of its digital advertising business. Meanwhile, Google is also alone among the tech giants in its adversarial relationship with California’s attorney general.

Transcript

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0:00.0

Hello and welcome to another MLEX podcast.

0:13.8

I'm Laurel Henning, a Sydney-based senior reporter for Emlex, and it's great to have your company.

0:19.1

In today's edition of Emlex's podcast, we look at the

0:22.2

antitrust woes of one of the world's largest companies, Google. The US tech giant stands

0:29.3

alone among its peers in its adversarial relationship with California's Attorney General Rob

0:34.5

Bonta, and it's facing new legal action from the US Department of Justice

0:38.7

over its allegedly abusive monopoly in the display advertising industry.

0:44.0

The DOJ case is, in part, the result of years of work done by the California Department of Justice.

0:50.6

The state has been investigating and prosecuting Google for years and is currently involved in two other antitrust-related actions against the company.

1:00.2

Here to discuss the legal headaches of this international juggernaut are two of Emlex's US-based reporters,

1:06.6

Chief Global Digital Risk Correspondent Mike Swift, and senior correspondent Mike Acton,

1:12.3

who both join me now from San Francisco. Now, I'm going to begin with Mike Acton and the latest

1:18.0

US Department of Justice lawsuit against Google. So Mike, what are the accusations against Google

1:23.9

in this new case brought by the DOJ, as well as, of course, eight states.

1:29.2

So to understand this, you really sort of need to have a sort of elemental understanding

1:32.8

of how the advertising technology market works. And basically, if you go on any website,

1:38.1

by any publisher, if it's a news website, whatever, and you see these ads that pop up on

1:43.2

the screen, what's happened there is that

1:45.7

there's been a real-time process of matching you up with an advert.

1:50.7

And so the allegation against Google is that what it essentially did is in the late 2000s

1:55.9

basically bought its way into the market with an acquisition of a company called DoubleClick,

2:00.3

which operated what's called DoubleClick, which

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