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It's groundhog day for a Google breakup

This isn't just another antitrust trial; it is a potential tectonic shift in how the open internet is funded, and Jerry Cayford frames it with a philosopher's eye for the "big picture" that most legal reporters miss. While the courtroom drama unfolds in Virginia, the real story is whether the digital infrastructure that sustains journalism and independent publishing can survive the dismantling of a monopoly that has quietly siphoned off its lifeblood.

The Rocket Docket and the Stakes of Speed

Cayford immediately grounds the reader in the unique pressure of the Eastern District of Virginia, known as the "rocket docket," where speed is both a virtue and a vulnerability. He notes that the Department of Justice and a bipartisan coalition of 17 states filed suit in 2023, yet the trial is already moving toward remedies for actions that occurred years ago. This rapid pace is crucial because, as Cayford writes, "slow-moving courts can hobble themselves in the face of fast-moving technologies." The administration's legal team hopes this speed will prevent Google from arguing that the market has evolved so much since the illegal acts that remedies are now obsolete. A placard outside the courthouse reads "Justice Delayed, Justice Denied," a sentiment Cayford suggests is particularly relevant here.

It's groundhog day for a Google breakup

The author argues that the court must resist the temptation to let technological change derail the case. If the judge waits too long, Google could claim the "rapidly changing technology ecosystem" renders structural fixes unnecessary. This is a high-stakes gamble: the court must act fast enough to be relevant, but carefully enough to be effective. Critics might note that rushing complex structural remedies in a volatile market could lead to unintended consequences, but Cayford's framing suggests that inaction is the greater risk.

The Plumbing of the Open Web

To make sense of the legal jargon, Cayford strips away the complexity, describing the core issue not as advertising itself, but as the "software underneath modern digital advertising—the 'plumbing,' so to speak." He explains that the trial focuses on two specific markets: the publisher ad server and the ad exchange. These are the mechanisms that decide which ad appears on a webpage in the fraction of a second it takes to load a site. "Instead of individual websites selling ad space, they hire a service to manage their space for them," he explains, highlighting how the old model of direct negotiation was replaced by automated, high-speed auctions.

The crux of the government's case is that Google illegally tied these two markets together. Cayford details how Google's publisher ad server (DFP) was linked to its ad exchange (AdX), creating a closed loop that stifled competition. "AdX and DFP, both already dominant, could then reinforce each other through 'a series of acts that diminished rivals' scale, thwarted their ability to compete, and harmed customers,'" he quotes from Judge Brinkema's opinion. This isn't just about fair play; it's about the flow of money. The author points out that Google's dominance has allowed it to charge monopoly fees, which have funded its "free" consumer services while draining revenue from the publishers who create the content.

As Google's "free" services are funded by monopoly fees, traditional media is disappearing behind paywalls - or disappearing altogether.

This observation is the piece's most haunting insight. The monopoly didn't just hurt competitors; it fundamentally altered the economic model of the open web. By siphoning funds that once went directly to journalists and website operators, the monopoly has contributed to a "near-extinction level crisis" for the news industry. The argument here is that breaking up the monopoly is not merely a legal technicality, but a necessary step to save the information ecosystem itself.

The Battle Over Divestiture

Now, the trial enters the remedy phase, where the gap between the two sides is stark. The Department of Justice is pushing for a structural breakup, specifically demanding that Google divest its ad exchange and parts of its publisher ad server. In contrast, Google argues that such measures are "radical," "extreme," and "severe," preferring behavioral remedies that would simply require the company to play by the rules in the future. Cayford notes that Google is leaning heavily on recent precedents, specifically the remedy in the search monopoly case and the historic Microsoft case, to argue against forced divestiture.

However, Cayford is skeptical of Google's legal strategy. He points out that the search case involved different facts and a different court, making it an "apples and oranges comparison." Furthermore, the Department of Justice is citing older, binding Supreme Court decisions that carry more weight. The author suggests that Judge Brinkema, known for her candor, will have to navigate these conflicting precedents carefully. "Given Judge Brinkema's candor during the liability phase of the trial, I expect we will see rather soon how she might resolve the parties' discordant reliance on binding and persuasive legal precedent," he writes.

The global context adds another layer of complexity. The European Union has already found Google liable for similar conduct and fined them $3.5 billion, with the EU Commission stating that "only the divestment by Google of part of its services would address the situation of inherent conflicts of interest." This international pressure suggests that the outcome in Virginia could have worldwide implications, potentially setting a standard for how tech monopolies are handled globally.

Bottom Line

Jerry Cayford's analysis succeeds in elevating the discussion from a dry legal proceeding to a critical moment for the future of the open internet. His strongest argument is that the monopoly's impact extends far beyond market share, directly threatening the viability of traditional journalism and independent publishing. The piece's biggest vulnerability lies in the uncertainty of the remedy itself; even if the court orders a breakup, the tech landscape shifts so rapidly that the fix could become outdated before it is fully implemented. Readers should watch closely to see if Judge Brinkema has the courage to impose the structural changes necessary to truly unfetter the market, or if she will settle for behavioral fixes that may prove insufficient.

Sources

It's groundhog day for a Google breakup

by Jerry Cayford · · Read full article

The remedy phase of Google’s Ad Tech monopoly trial begins today. Google was found liable last April for illegally monopolizing two markets related to open web digital advertising technology. The trial starting today before Judge Leonie Brinkema in the U.S. District Court for the Eastern District of Virginia will decide what remedies the court will impose to try to repair the market from Google’s damage.

First, let me introduce myself. My name is Jerry Cayford, and I am a philosopher who has some training in economics and a strong amateur enthusiasm for the law. It may seem odd for Big Tech on Trial to assign a philosopher to cover an antitrust trial. But I believe (with no bias at all) that this is entirely sensible. The Google Ad Tech remedy trial is a very big deal, and philosophy is, after all, the discipline that tries to give us the big picture. There is a bit of philosopher in all of us, a drive when we see important things happening to get a handle on what they mean overall, and where they’re taking us. I’m going to try to help you do that for the two or three weeks that this remedy trial will last. As usual with BTOT, I’ll also be providing color to the daily details, and as always, this is a two-way platform, so subscribe and leave comments below.

How We Got Here: The “Rocket Docket” In Action

It’s been a while since we’ve reported on the Google Ad Tech trial. In the intervening year, BTOT has covered a whole separate trial, the Federal Trade Commission’s monopolization case against Meta (Facebook/Instagram). And starting this month, a separate federal court under the tutelage of Judge Amit Mehta delivered a remedy in the Google Search monopoly case that has attracted round and swift rebuke, including by this publication (“A Judge Let’s Google Get Away With Monopoly.”)

So you can be forgiven for forgetting the details of this case, which the Department of Justice and eight states first filed against Google in January 2023 for illegally monopolizing various digital advertising markets. (Nine more states would eventually join the suit, bringing the total number of Plaintiff states to a bipartisan group of 17.) Meanwhile, the State of Texas filed its own litigation back in December 2020. To give you a sense of why they call the Eastern District of Virginia the “rocket ...