OK all ye people depressed Judge Mehta didn't order Google broken into bits this week. I'm here to cheer you up. DOJ has its other remedies trial in 16 days and just posted its PFJ (Proposed Final Remedies) now 60+ pages of brilliant detail. Let me walk you through key terms. /1
This is the 2023 US v Google adtech win - the one DCN and its premium publishers have long been much more deep and focused on. Here’s what it means for publishers of all types - and why it will be a massive win for the open web if Judge Brinkema signs on (I believe she will). /2
First, clear structural remedies. Google must divest AdX, its ad exchange, w/in 2yrs and likely DFP, its publisher ad server. No more vertical ad stack monopoly with interest conflicts. This would finally decouple tools Google can use to rig auctions and suppress pub revenues. /3
While divestiture is underway, Google is banned from:
* Self-preferencing its own tools
* Tying/bundling AdX + DFP
* Discriminating in routing bids
* Reinstituting its illegal conduct (Google is fighting basically just to do only this term) /4
Disgorgement. Super important. Call it a DCN special - but for all pubs. Google must put 50% of its net revenue from AdX and DFP into a court-monitored escrow starting 4/17/25 to:
* support pubs' ops while moving off DFP
* fund neutral industry-run open-source ad auction /5
Google is required to open-source the code behind its ad auctions. Publishers get visibility and a new foundation for transparent auctions as confidence the auctions are only working for them in selling all of their inventory types. /6
Google can’t use its privileged access to publisher/ad buyer data to reinforce its adtech dominance. It must separate, silo, and restrict usage - especially critical as AI training models feed off of this data. /7
So effectively, if the Court agrees, DOJ here will:
* unwind two illegal Google monopolies
* empower better adtech options for publishers
* disgorge G to fund a more competitive ecosystem
* end 10+ yrs of opaque, self-dealing auctions /8
And finally, those who helped shine sunlight on all of Google's abuses over the last decade to the critical moment of these trials will be able to go back to their day lives without retaliation from Google. Note: no publishers testified in the search remedies. Hmmm. /9
But wait, what is Google's side of story as they also just posted their 25 pages. Google states (this is news by the way)
"the open web is already in rapid decline"
which IMHO is a pretty rich claim considering Google has dominated distribution, design, monetization of it. /10
Google also claims AI has changed everything since this case was brought. This is Google's "jazz hands" that succeeded in the Search case (5yrs). But this case was filed 2yrs ago. WTF. Google claims we have "entirely new enormously popular publishers, such as AI chatbots" !!!
/11
For those ready to dive into the full 61 pages, here you go. Sorry I can't easily post my highlighted version. And for the good people of the E.U., this is where you need to go. Step up to the plate, we need you. Keep at it, @Teresaribera. 🙏 storage.courtlistener.com/recap/gov.usco…
A tip to a big showdown. Google is attempting to argue divestiture isn't feasible using employee witnesses who worked on feasibility studies it wants to keep out of evidence. But Google's prior evidence purging record may well bite again. Hi Kent. /13 storage.courtlistener.com/recap/gov.usco…
One of those employee witnesses is Tim Craycroft. It appears Google counsel shut down some of his answering on this matter. Craycroft worked at Amazon for a long time so I find him very interesting as a witness here. /14
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The 8hr video of Jack Smith’s testimony was released by Congress on New Years’ Eve in between Epstein and Venezuela. It’s an extraordinary display of Smith’s integrity and attention to justice and fairness on 1/6. Allison Gill deserves praise for curating the key clips. 1/4
Smith clearly represents all who worked towards justice and public interest, expressing his confidence and rationale he had the evidence to prove Jan 6th case to a jury. He also shows his gratitude to those retaliated against - in just doing their jobs. This stood out to me. 2/4
I must say I’m impressed by Covington & Burling law firm who has stood strong during this retaliation. This is just 1/6 - they’ve worked with Smith to be cautious to not discuss any confidential details in his classified docs report still sealed by Judge Cannon. (1.3x to fit) 3/4
So many mind blowing sentences in this just incredible Wall Street Journal report. Starting here, “Witkoff, who hasn’t traveled to Ukraine this year, is set to visit Russia for the sixth time next week and will again meet Putin. He insisted he isn’t playing favorites.” /1
“Inside were details of the commercial and
economic plans the Trump administration had been pursuing with Russia, including jointly mining rare earths in the Arctic.” /2
“European official asked Witkoff to start speaking with allies over the secure fixed line Europe's heads of state use to conduct sensitive
diplomatic conversations. Witkoff demurred, as he traveled too much to use the cumbersome system.” /3
Saturday’s “No Kings” protests have filled front pages across America with impactful visuals and headlines of peaceful protests. Many included the eye popping NYC Times Square shot. Here in the Dothan Eagle (Alabama). But everyone turned out. See Montana in its Missoulian. /1
Plenty of big city energy from St. Louis, Missouri to Chicago, Illinois. /2
Midwest with Cleveland, Ohio to Pittsburgh, Pennsylvania. /3
US v Google remedies: Nothing groundbreaking from return of DOJ’s star economist this morning. Court tested if his concerns over solely behavioral remedies assume distrust in Google (won’t follow court orders). I don’t think it mattered relative to where we were last night... /1
Yes, some will read as leaning against structural-remedy interest. I took it simply her clarifying she doesn’t need to lean on distrust if structural is shown tech feasible. Although witness pointed out distrust harms competition investment levels. /2
Court also very much nodded head when witness Lee explained why he didn’t do “but for” analysis to a dollar amount. Mehta also determined in search it was infeasible and unnecessary so cross that out of Google’s defense imho. /3
ok, this is HUGE. Late Friday, Penske (PMC) filed a wicked-smart, landmark antitrust lawsuit against Google. I've now read it in full and I'm very impressed. Importantly, it's the first antitrust suit for Google tying its AI-driven products to its adjudicated search monopoly. /1
The core claim: Google is abusing its search monopoly to force pubs to hand over content - not just for traditional search indexing but to feed its AI. Google then repurposes it to substitute them with its own services breaking the fundamental bargain of the open web. /2
Penske says this is not a fair exchange. If it weren't for Google's adjudicated monopoly power (recall Judge Mehta said they get 19x as many queries as next biggest), Google would be paying pubs for these rights or if it didn't then they would opt-out of providing them. /3
All eyes at Google on streaming NFL game tonight but Google Inc and its many monopolies have had quite the week. I’ve been absorbing on this end, some quick Friday thoughts on things missed. Bad news certainly for the public, and also DCN members, in US v Google Search case. /1
Judge Mehta said "no thanks" to helping publishers - because he said no pubs testified. Maybe that’s what retaliation fear looks like??? He also noted the unlawful conduct was about distribution deals, not deals with publishers. More on that in a minute. /2
Despite Mehta finding Google illegally maintained its 95%+ search monopoly with browser deals, he also said it’s OK for Google to keep owning Chrome - the world’s biggest browser - so they can keep paying everyone else and free riding on their own browser. All bad here. /3