Advertising Week has been busy.
The Department of Justice has taken the next step in its landmark antitrust case against Google by proposing remedies to address the company’s alleged monopoly in the internet search market, according to a filing released moments ago.
These include the following:
Search Distribution and Revenue Sharing: The DOJ wants to undo Google’s control over key distribution channels that have, according to them, locked out competitors. Remedies may include limiting Google’s contracts, rev-share agreements, and other tools that control distribution. The most interesting language here, however, is “structural remedies that would prevent Google from using products such as Chrome, Play, and Android.” “Structural remedies” typically refer to divestiture.
Accumulation and Use of Data: To reduce Google’s data advantage, the DOJ proposes requiring Google to share key datasets, including indexes and search results, with rivals via APIs.
Generation and Display of Search Results: The DOJ is considering restricting Google’s ability to leverage its monopoly power to develop new AI-driven search features and services, which would, in theory, open up competition on building AI search. (Perplexity is high-fiving itself.)
Advertising Scale and Monetization: The DOJ suggests remedies to lower barriers for competitors, potentially through syndication or licensing of Google’s ad products. The remedies could also include providing advertisers with more detailed and transparent information about Google’s ad auctions and monetization, giving them more control and options.
To support all of this, the DOJ wants to require Google to pay for a Court-appointed committee to monitor compliance, designate a senior executive to report on compliance, and train employees on the remedies it’s proposing. Additionally, Google would be blocked from investing in competitors and retaliating against rivals or anyone seeking to work with the DOJ.
The DOJ’s final proposal must be filed by November 20. Interestingly, closing arguments for the US vs. Google adtech antitrust trial, which ended about a week ago after nearly a month, are scheduled for a few days later on November 25.
Why This Matters:
These remedies would fundamentally change the search landscape.
For example, they could open up new channels for Google’s competitors to reach users and level the playing field by making Google share key data like search indexes and results. This would help rival search engines improve their offerings. Limiting Google’s development of AI search features would also give other companies room to innovate in this space. More transparency in ad auctions and greater advertiser control could also diversify ad spending, potentially weakening Google’s grip on search monetization. All of this matters.
Experts React:
Digital Content Next’s Jason Kint says, “the actual proposal will come by Nov 20th then Google will respond, discovery, hearings in spring, court order by summer. Then appeal no doubt. But I’ll end where I started, structural separation is rightly on the table.”
According to Vidushi Dyall, Director of Legal Analysis at the Chamber of Progress, the DOJ has “chosen a broad approach, including a potential breakup. While the case centers on exclusivity deals with OEMs and browsers, the DOJ appears to be pushing way beyond that focus.” She adds, “History reminds us that this ‘go big or go home’ strategy didn’t play out well for the DOJ in the Microsoft case. Though they succeeded on the liability front, they ultimately failed to secure a breakup.”
Our Take:
It’s no exaggeration to call this filing historic. If the proposed remedies are implemented, their impact will be far-reaching, extending beyond search to adtech, distribution agreements, AI, data usage, and more.
