This year could be one of the biggest changes ever seen in the tech industry. Several legal cases related to Google’s search and advertising services have engulfed the company in its home country. The latest developments seem unfavorable for Google, as the judge in the AdTech trial harshly attacked certain internal policies of the company that would lead to the destruction of evidence.
For context, the AdTech trial is the second big legal case that Google will face this year. The trial pertains to Google’s strategies against competitors to maintain its dominance in the digital advertising technology segment. In a previous trial, the DOJ scored a resounding victory after the judge’s ruling found Google’s practices in the search engine segment to be monopolistic.
AdTech-related antitrust trial judge harshly criticizes Google’s internal practices
The AdTech trial, filed by the DOJ and a coalition of states in 2023, is set to begin in less than two weeks. However, it seems that Google will not have an easy time defending itself given the position of Judge Leonie Brinkema. The judge says Google’s actions related to the so-called Walker Memo are “absolutely inappropriate and not appropriate.”
The “Walker Memo” refers to internal protocols set by Google among its staff to protect itself from lawsuits related to its business practices. The protocol would include enabling a “history off” mode for sensitive chats, which would delete messages within 24 hours. Yes, Google “invented” Snapchat before Snapchat, but not for exactly the same purpose. The legal documents say that Google staff jokingly refer to these policies as “Vegas mode.” Meanwhile, Google considered them to be “communication with care” practices.
The “Walker Memo” is named after a memo by Google’s chief legal officer, Kent Walker. The memo dates back to 2008, so Google’s particular protectionist policies would have been in place for 16 years. This did not sit well with Judge Brinkema, who called them “incredible smoking guns” of potential inappropriate practices. The judge in the AdTech trial believes that Google has been systematically destroying evidence that could determine the trial’s outcome.
Another ruling against Google would change the industry forever
The ruling in the AdTech trial against Google could cause a stir in the industry. Google will already need to implement significant changes to its Google Search-related practices in response to the previous setback. A negative outcome in the AdTech trial would have a similar effect, potentially impacting pricing schemes or even ad reach to ensure that third parties can compete fairly.
Interestingly, one of the DOJ’s proposals is for Google to completely divest itself of its AdTech platform. However, given how important ads are to Google’s business, this is unlikely to happen. Meanwhile, the company has another AdTech-related antitrust trial pending in Texas in March 2025. So, Google’s legal department seems to be just as busy as its AI-focused divisions.
2024-09-01 15:04:41