President Donald Trump was sworn in for his second term earlier this month. During the inauguration ceremony, a group of Big Tech CEOs were prominently featured, and observers interpreted this as a bid to curry favor with the current occupant of the Oval Office.
Among their number was Alphabet CEO Sundar Pichai, who, despite being the lowest profile of the assembled executives, is arguably in the deepest hot water given the host of battles it faces with the Justice Department and could do with a sympathetic ear in the executive branch of the U.S. government.
Examples include the business-critical search case, where it faces the forced sell-off of the Chrome browser, and in addition to this case, which Google lost but is in the process of appealing, is its ongoing ad tech antitrust trial, where a verdict from presiding Judge Leonie Brinkema has been anticipated for weeks. DOJ lawyers are pushing for a forced sell-off of its sell-side ad tech tools. Many expect the ruling to go against Google, prompting another appeals process, with the looming uncertainty splitting opinion on how best to position oneself for the resulting fallout.
However, questions are being posed, with opinions split on whether material changes can be felt any time soon. These questions include whether Google has actually outfoxed its detractors, with ad tech now a blip on the radar of its strategic priorities, and what are the most effective means of addressing competition concerns.
Firstly, it’s worth revisiting the DOJ’s case. Lawyers there maintain that Google has used its massive market presence and ability to measure ad performance, making it the go-to resource for direct-response advertisers. Requiring Google to spin out these crown jewels would cause Alphabet executives to take a much deeper breath and likely prompt a more resolute fightback, according to some, adding that this and the enforced opening of its conversion API would further democratize ad measurement.
For some, lawmakers across the globe should force Google to open-source its measurement capabilities, as such a concerted action would have a better likelihood of achieving success. Rather than having a company with proprietary code, it could be opened up, and such a scenario would act as the seed to a new market in innovative products in the space.
However, such a theoretical scenario would take years to be realized, with some certain that Google would certainly throw the full force of its ample legal defense team to resist any such machinations. Meanwhile, others are doubtful that legal teams have the resources necessary to achieve such an aim.
Of course, Google is resolute in its defense, with lawyers claiming its ad tech is the cornerstone of emerging subsectors of the media industry, with the DOJ’s assertions atavistic of days gone by, and no longer fit for purpose.
However, what most are in agreement on is that Google’s battles with the government are far from over, regardless of any newfound friends in high places.
