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The Google Sundar Pichai CEO testifies to the House of Representatives Committee at the Rayburn House House House Committee on December 11, 2018 in Washington, Columbia District.
Alex Wong | Gets the image
Google’s Antitrust troubles continue to fasten as the company tries to reinforce the future where artificial intelligence prevails.
Thursday federal judge manage that Google conducted illegal monopolies in the online advertising markets from its position between buyers and sellers.
The ruling, which arose from the September trial in Alexandria, Virginia, is a second major antitrust strike for Google per year. In August the judge determined The company has conducted a monopoly on its main search market on the Internet, the most significant antitrust ruling in the technological field since time undertaking against Microsoft More than 20 years ago.
Google is in a particularly volatile place as it tries to protect its main business at the same time, while at the same time reflection from the new competition from the appearance of the generative II, first of all, the Openai Chat, which offers users alternative ways of finding information. In recent years, revenue growth has cooled down and Google has also faced additional ads slowing from economic issues President Donald Trump New tariffs sweep.
The alphabet of the parent company reports the results of the first quarter next week. On Thursday, the alphabet stock price fell more than 1%, and this year decreased by 20%.
In the Thursday’s ruling, US District Judge Leona Brinkham said Google’s anti -competitive practices have “significantly harmed” publishers and users on the Internet. The court presented 39 live witnesses, deposits of additional 20 witnesses and hundreds of exhibits.
Judge Brinkam has ruled that Google illegally controls two of the three -parts of advertising technology market: the advertising server market and the advertising market. Brikema rejected the third part of the case, determining that the tools used for the overall display cannot be defined accurately as Google’s own market. In particular, the judge referred to DoubleClick and Admeld purchases and stated that the government did not show that “the acquisitions were anti -competitive.”
“We won half this case, and we will appeal the other half,” said Li-Ann Malholland, Google Vice President or regulation, an email said in a statement. “We disagree with the court decision regarding our publishing instruments. The publisher has many options and they choose Google because our advertising tools are simple, affordable and effective.”
Prosecutor General Pazi Bondi said in a doj press release that the ruling is a “landmark victory in the current struggle to stop Google from monopolizing digital public square.”
If the regulators force the company to deprive part of the special business, as the Ministry of Justice asked, it can open opportunities for smaller players and other competitors to fill the void and thwart the valuable share of the market. Amazon In recent years, its advertising business has been growing.
Meanwhile, Google is still protecting itself from the claims that its search acted as a monopoly, creating strong barriers for entry and a feedback cycle that supported its domination. Google said that in August, immediately after the search ruling, it will appeal, that is, it could play in court for years even after determining the remedy.
The trial on the funds that will outline the consequences begins next week. The Justice Department strives to break the Google Chrome browser and eliminate exclusive agreements, such as his transaction with Apple To search for iPhones. It is expected that the judge will pass the ruling by August.
Google Sundar Pichai CEO (L) and Apple CEO Tim Cook (R) listen to the US President Joe Biden talking during a roundtable with US and Indian business leaders in the Eastern White House on June 23, 2023 in Washington, Columbia District.
Anna Money Gets the image
Following the advertising market decree on Thursday Andrew Frank Gartner said Google’s “conflict” is manifested in how the market works.
“The structure has been decades in the process of creating,” Frank said, adding that “it would be unraveling that it would be a serious problem, especially since lawyers are not architects of the system.”
However, the uncertainty that arises with the potentially perennial processing process means that many publishers and advertisers expect to learn how to crack before making any big decisions, given how much they rely on Google technology.
“Google will have incentives to encourage greater competition, perhaps weakening certain restrictions on certain media that it controls. YouTube is one of them,” Frank said. “Such incentives can create opportunities for other publishers or advertising technology.”
The date of the trial is not established by legal protection.
Damian Rolison, Senior Director of the Soci Marketing Platform, said the hit hit of the advertising market could be more dramatic than exposure to search.
“The company can lose much more in material terms when its advertising business, its main source of profit is broken for a long time,” Rolison said in an email. “While divisions such as Chrome are more strategically important.”
Watch: US judge believes Google holds illegal monopolies online technologies