Explainer-What does ruling on Google’s illegal ad tech monopoly mean?

San Francisco (Reuters) -The American judge decides that Google has illegal monopolies in advertising technology, puts the ability of American prosecutors looking for disintegration. Here is what the case includes and what Google Alphabet owner is facing here.

What is this?

The most important thing is what is not about it: this is not related to research, Google bread and butter, although there is a separate case to combat monopoly about the search. The issue of advertising technology of the Ministry of Justice revolves around the Google Network, a section of the work that runs its system similar to the auction used by advertisers to buy a digital advertising space. Declaration technology chooses what an advertisement should be placed at any cost.

Federal prosecutors said that the Google’s strength on advertising technology allows it to fill the competition illegally, which harms web publishers, such as news means. The judge agreed. Google’s argument was that it is competitors through superior technology.

The advertisement constituted about 75 % of Alphabet revenues 350.02 billion dollars in 2024. Google Network accounted for only 8.7 % of revenues.

What happens after that?

The judge who ruled illegal monopolies now will hear arguments about what to do. At least, the Ministry of Justice was seeking to strip the Google Advertising Director, a platform within the network section. The advertising manager represents 4.1 % of the total revenue and 1.5 % of operating profits in 2020, according to Wedbush research and court document analysis.

Modern numbers have been revised from court documents.

What is the size of the deal for Google?

Erik Hoffeencamp, a professor at Cornell College of law, expected earlier in the case that if you lose, Google may have to strip some, and not all, from the announcement of the offer, and the net effect will be a decrease in revenue less than 10 %.

Google was even open to some of the abstraction of advertising technology. Reuters first reported on September 18 that Google itself offered the sale of advertising exchange, which is part of Google Ad Manager, to satisfy European monopoly organizations. The sources said that the publishers rejected the proposal.

Could this have ripples?

Nicholas Goghnberger, a law professor at Houston University, said that the most dangerous effects of the ruling may manage the effects of the treatment of treatments that were requested by the court through other parts of its advertising technological wing, said Nicholas Goghnburger, a professor of law at Houston University. In theory, the victory of the Ministry of Justice will make it easier for advertisers and publishers to switch advertising technology platforms.

There is also a political precedent that has been identified in terms of political will: Biden and Trump’s departments have supported this issue so far, which indicates almost a unique level of cooperation on both sides of the political corridor in the trial of major technology.

Analysts say there is a separate condition and the highest anti -monopoly quotas on Google’s research technology that continues, and this is a physical wound compared to the effects of the search loss. A judge in Washington will be held next week in search of research.

Is this the end?

no. Google has already said she will resume. The federal judge then must decide what treatments are for illegal monopoly. It will be some time, most likely years, before completing this, unless the settlement is agreed.

(Participated in Kenrick Kai reports, written by Peter Henderson; Edit by Mago Samuel)