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Chronicles

The story behind the story

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Sources: the US DOJ is likely to reject Alphabet's concessions and file an antitrust lawsuit in the coming weeks over Google's dominance of the online ad market

Bloomberg Leah Nylen

Context & Ripple Effects

This story closes a two-year loop: back in May 2020, sources reported the DOJ and state AGs were weighing antitrust action against Google over its ad business and search dominance, and this report shows the division has now moved past negotiation — Alphabet's offered concessions are expected to be rejected outright rather than accepted as a settlement.

That matters because the ad market case became the spine of the government's Google campaign: the suit sources said was coming here did land (the fifth major US case against the company), ran in parallel with an EU formal complaint over its ad tech, and eventually produced structural remedy demands aimed at the ad network itself.

First-order effects

  • Alphabet loses the settlement path: with concessions rejected, Google faces a filed lawsuit over its ad market dominance instead of a negotiated resolution, putting its publisher-facing ad tools under formal legal attack.

Second-order effects

  • Publishers and advertisers interviewed by DOJ antitrust lawyers become the case's evidence base, giving buyers of Google's ad stack their first real leverage point in years; the EU's separate ad-tech complaint means Google must defend the same business on two regulatory fronts.

Third-order effects

  • If the pattern holds, negotiated concessions give way to structural remedies: the case later produced demands that Google sell off its network ad business — roughly 12% of Alphabet's revenue — and post-ruling DOJ deliberations over a breakup show the endgame had shifted from behavior fixes to corporate structure.

The trend: Antitrust enforcement against Big Tech platforms is shifting from accepting behavioral concessions to pursuing structural breakups, with ad tech as the proving ground on both sides of the Atlantic.

Discussion

  • @si1very Chris Silver Smith on x
    14 yrs ago, I provided expert testimony for the @TheJusticeDept 🏛️ in a hearing on proposed MicroSoft/Yahoo! ("Microhoo") merger & Google/Yahoo! ad syndication deals. I opined that allowing the deals would reduce competition in the marketplace, ultimately harming advertisers.⚖️ h…
  • @jason_kint Jason Kint on x
    As expected - and BIG. When Google “concession” offer leaked last week, it was on par with Steve Bannon news last Friday he was willing to cooperate with 1/6 cmte days prior to his trial. In other words, something to ignore for anyone studying closely. https://www.bloomberg.com/.…
  • @noodleshak @noodleshak on x
    For you kids out there, keep in mind over 80% of googles profits come from ads. Think of that huge company and everything they do. Advertising is what feeds that beast. They essentially are online advertising. Good on the DOJ for trying to break this up. https://twitter.com/...
  • @rustybrick Barry Schwartz on x
    Not unexpected... Sorry Google... https://twitter.com/...
  • @gerritd Gerrit De Vynck on x
    this stock photo is exactly how I feel trying to keep track of antitrust lawsuits against Google https://www.bloomberg.com/...