Technology

Google and DOJ’s ad tech fight is all about control

Published

1 year ago

September 9, 2024

Google and DOJ’s ad tech fight is all about control

Google and the US Justice Department each believe the other wants too much of one thing: control.

“Control is the defining characteristic of a monopolist,” DOJ counsel Julia Tarver Wood said during opening statements in the federal government’s second antitrust trial against the search giant, which kicked off Monday in Alexandria, Virginia. To the government, Google exerts too much control over every step in the way publishers sell advertising space online and how advertisers buy it, resulting in a system that benefits Google at the expense of nearly everyone else.

“Control is the defining characteristic of a monopolist”

To Google, the government is seeking control over a successful business by making it deal with rivals on more favorable terms, disregarding the value of its investments in technology and the unique efficiencies of its integrated tools.

By the end of the trial, which is expected to last several weeks, US District Court Judge Leonie Brinkema will be left to decide which side is exerting too much control — and ultimately, if Google has illegally monopolized the markets for advertising technology.

Markets is a key word, since one question raised on the first day is how many monopolies Google might actually have. (A federal court in DC says at least one, since it recently ruled Google a monopolist in search.) The DOJ is arguing that Google has monopoly power in three different ad-related markets: those for publisher ad servers (where websites hawk ad space), ad exchanges (which facilitate ad transactions), and advertiser ad networks (where advertisers go to buy ad space). They’re also arguing that Google illegally tied together its publisher ad server with its ad exchange to maintain its monopoly power.

“One monopoly is bad enough,” Wood said during opening statements. “But a trifecta of monopolies is what we have here.”

“A trifecta of monopolies is what we have here”

Google says it’s not a monopolist, and in fact there’s only one market: a two-sided market made of buyers and sellers of online ad inventory. In opening arguments, its counsel said the government is ignoring relevant Supreme Court precedent that says this is the best way to view such a market. The company also argues regulators are carving up the field with terms like “open web display advertising,” which Google calls contrived. What the government really wants here, Google claims, is to require it to deal with its rivals — something the Supreme Court has said isn’t really the job of the judicial system.

After opening statements, the DOJ began calling its first witnesses, focusing on the tools publishers use to monetize display ads. These are the ads that typically pop up at the top or the side of the page on news websites and blogs, populating through super-quick auctions that run while the page loads. During the auction, an ad exchange helps match publishers and advertisers based on things like topic and price without active intervention by a human. The process is called programmatic advertising, and it’s used by The Verge’s parent company Vox Media among many others. (Vox Media president of revenue and growth Ryan Pauley is on the list of potential witnesses but wasn’t called today.)

Google’s tools play an essential role in the process, with some of them holding about 90 percent of the market, according to the government. Google has a publisher ad server called Google Ad Manager (formerly DoubleClick for Publishers, or DFP), which helps publishers sell ad space. It operates an ad exchange, AdX, that facilitates transactions. And it owns an advertiser ad network, rounding out its trifecta of major products across different parts of the ad world.

Four industry players testified Monday, representing a publisher (Tim Wolfe, SVP of revenue at Gannett), an ad exchange (Andrew Casale, president and CEO of Index Exchange), a marketer (Joshua Lowcock, president of media at Quad), and a publisher ad network (James Avery, founder and CEO of Kevel). Across the testimonies, the government tried to establish that programmatic display advertising is not something publishers can easily substitute with other types of advertising, including direct deals with advertisers or ads on social media sites. And it introduced the idea that switching from Google tools isn’t such an easy decision, even when there might be some reason to do so.

In testimony, for instance, Wolfe and Avery both made clear that publishers are largely unwilling to switch away from Google Ad Manager. They said it’s because Google packages it with access to AdX, and losing that package deal would mean giving up large amounts of revenue — even if rivals offer to take a much smaller cut for facilitating each ad sale. Wolfe testified that when Gannett received one such offer, that reduced take rate didn’t move the needle, since it wouldn’t offset the benefits of AdX.

The ad server company Kevel started by targeting traditional publishers, but Avery says competing with Google proved impossibly hard. He recalled publishers asking how his company would replace the revenue they made from AdX, something Kevel simply couldn’t manage. After trying to engage Google twice about ways to connect Kevel’s ad server with AdX, Avery testified, his efforts were rebuffed. Kevel pivoted to facilitating things like sponsored listings for retailers instead.

Speaking from the ad exchange perspective, Casale testified that switching ad servers is a big lift at the technical level, so publishers rarely do it. Building a new one is “very complex and expensive.” In the ad exchange market, Casale said competing with Google’s AdX is “very challenging,” and in experiments, reducing fees had barely a “nominal” impact on the ability to gain more business. Because of the huge network effects it takes to get an exchange off the ground, as well as the fact that it only gets visibility into ad impressions it wins, “I can’t imagine anyone starting a new exchange today,” he said.

Google’s attorneys poked at the witnesses’ arguments and credibility during cross-examination, pointing out ways players like Avery would benefit if the court forced Google to share access to its tools. Google will call its own witnesses to counter the DOJ later in the trial.

“I can’t imagine anyone starting a new exchange today”

This trial covers very different ground from last year’s antitrust fight in the District of Columbia. But on the first day of court, both sides alluded to their earlier battle. The Department of Justice mentioned during opening statements that another court had already adjudicated the question of Google’s search monopoly, referencing a ruling Judge Amit Mehta handed down just over a month ago. And although Mehta ruled mostly against Google, the tech giant cited a piece of the ruling that went in its favor. The topic? A DOJ argument Mehta interpreted as a requirement for Google to cut deals with competitors — and, accordingly, dismissed.

Technology

Defense secretary Pete Hegseth designates Anthropic a supply chain risk

Published

10 hours ago

February 27, 2026

Press Room

Defense secretary Pete Hegseth designates Anthropic a supply chain risk

This week, Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon.

Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic.

Instead, @AnthropicAI and its CEO @DarioAmodei, have chosen duplicity. Cloaked in the sanctimonious rhetoric of “effective altruism,” they have attempted to strong-arm the United States military into submission – a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives.

The Terms of Service of Anthropic’s defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield.

Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military. That is unacceptable.

As President Trump stated on Truth Social, the Commander-in-Chief and the American people alone will determine the destiny of our armed forces, not unelected tech executives.

Anthropic’s stance is fundamentally incompatible with American principles. Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered.

In conjunction with the President’s directive for the Federal Government to cease all use of Anthropic’s technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.

America’s warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final.

Technology

What Trump’s ‘ratepayer protection pledge’ means for you

Published

10 hours ago

February 27, 2026

Press Room

What Trump’s ‘ratepayer protection pledge’ means for you

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When you open a chatbot, stream a show or back up photos to the cloud, you are tapping into a vast network of data centers. These facilities power artificial intelligence, search engines and online services we use every day. Now there is a growing debate over who should pay for the electricity those data centers consume.

During President Trump’s State of the Union address this week, he introduced a new initiative called the “ratepayer protection pledge” to shift AI-driven electricity costs away from consumers. The core idea is simple.

Tech companies that run energy-intensive AI data centers should cover the cost of the extra electricity they require rather than passing those costs on to everyday customers through higher utility rates.

It sounds simple. The hard part is what happens next.

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At the State of the Union address Feb. 24, 2026, President Trump unveiled the “ratepayer protection pledge” aimed at shielding consumers from rising electricity costs tied to AI data centers. (Nathan Posner/Anadolu via Getty Images)

Why AI is driving a surge in electricity demand

AI systems require enormous computing power. That computing power requires enormous electricity. Today’s data centers can consume as much power as a small city. As AI tools expand across business, healthcare, finance and consumer apps, energy demand has risen sharply in certain regions.

Utilities have warned that the current grid in many parts of the country was not built for this level of concentrated demand. Upgrading substations, transmission lines and generation capacity costs money. Traditionally, those costs can influence rates paid by homes and small businesses. That is where the pledge comes in.

What the ratepayer protection pledge is designed to do

Under the ratepayer protection pledge, large technology companies would:

Cover the full cost of additional electricity tied to their data centers
Build their own on-site power generation to reduce strain on the public grid

Supporters say this approach separates residential energy costs from large-scale AI expansion. In other words, your household bill should not rise simply because a new AI data center opens nearby. So far, Anthropic is the clearest public backer. CyberGuy reached out to Anthropic for a comment on its role in the pledge. A company spokesperson referred us to a tweet from Anthropic Head of External Affairs Sarah Heck.

“American families shouldn’t pick up the tab for AI,” Heck wrote in a post on X. “In support of the White House ratepayer protection pledge, Anthropic has committed to covering 100% of electricity price increases that consumers face from our data centers.”

That makes Anthropic one of the first major AI companies to publicly state it will absorb consumer electricity price increases tied to its data center operations. Other major firms may be close behind. The White House reportedly plans to host Microsoft, Meta and Anthropic in early March to discuss formalizing a broader deal, though attendance and final terms have not been confirmed publicly.

Microsoft also expressed support for the initiative.

“The ratepayer protection pledge is an important step,” Brad Smith, Microsoft vice chair and president, said in a statement to CyberGuy. “We appreciate the administration’s work to ensure that data centers don’t contribute to higher electricity prices for consumers.”

Industry groups also point to companies such as Google and utilities including Duke Energy and Georgia Power as making consumer-focused commitments tied to data center growth. However, enforcement mechanisms and long-term regulatory details remain unclear.

CHINA VS SPACEX IN RACE FOR SPACE AI DATA CENTERS

The White House plans talks with Microsoft, Meta and Anthropic about shifting AI energy costs away from consumers. (Eli Hiller/For The Washington Post via Getty Images)

How this could change the economics of AI

AI infrastructure is already one of the most expensive technology buildouts in history. Companies are investing billions in chips, servers and real estate. If firms must also finance dedicated power plants or pay premium rates for grid upgrades, the cost of running AI systems increases further. That could lead to:

Slower expansion in some markets
Greater investment in renewable energy and storage
More partnerships between tech firms and utilities

Energy strategy may become just as important as computing strategy. For consumers, this shift signals that electricity is now a central part of the AI conversation. AI is no longer only about software. It is also about infrastructure.

The bigger consumer tech picture

AI is becoming embedded in smartphones, search engines, office software and home devices. As adoption grows, so does the hidden infrastructure supporting it. Energy is now part of the conversation around everyday technology. Every AI-generated image, voice command or cloud backup depends on a power-hungry network of servers.

By asking companies to account more directly for their electricity use, policymakers are acknowledging a new reality. The digital world runs on very physical resources. For you, that shift could mean more transparency. It also raises new questions about sustainability, local impact and long-term costs.

ARTIFICIAL INTELLIGENCE HELPS FUEL NEW ENERGY SOURCES

As AI expansion strains the grid, a new proposal would require tech firms to fund their own power needs. (Sameer Al-Doumy/AFP via Getty Images)

What this means for you

If you are a homeowner or renter, the practical question is simple. Will this protect my electric bill? In theory, separating data center energy costs from residential rates could reduce the risk of price spikes tied to AI growth. If companies fund their own generation or grid upgrades, utilities may have less reason to spread those costs among all customers.

That said, utility pricing is complex. It depends on state regulators, long-term planning and local energy markets.

Here is what you can watch for in your area:

New data center construction announcements
Utility filings that mention large commercial load growth
Public service commission decisions on rate adjustments

Even if you rarely use AI tools, your community could feel the effects of a nearby data center. The pledge is intended to keep those large-scale power demands from showing up in your monthly bill.

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Kurt’s key takeaways

The ratepayer protection pledge highlights an important turning point. AI is no longer only about innovation and speed. It is also about energy and accountability. If tech companies truly absorb the cost of their expanding power needs, households may avoid some of the financial strain tied to rapid AI growth. If not, utility bills could become an unexpected front line in the AI era.

As AI tools become part of daily life, how much extra power are you willing to support to keep them running? Let us know by writing to us at Cyberguy.com.

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Kurt “CyberGuy” Knutsson is an award-winning tech journalist who has a deep love of technology, gear and gadgets that make life better with his contributions for Fox News & FOX Business beginning mornings on “FOX & Friends.” Got a tech question? Get Kurt’s free CyberGuy Newsletter, share your voice, a story idea or comment at CyberGuy.com.

Technology

Here’s your first look at Kratos in Amazon’s God of War show

Published

22 hours ago

February 27, 2026

Press Room

Here’s your first look at Kratos in Amazon’s God of War show

Amazon has slowly been teasing out casting details for its live-action adaptation of God of War, and now we have our first look at the show. It’s a single image but a notable one showing protagonist Kratos and his son Atreus. The characters are played by Ryan Hurst and Callum Vinson, respectively, and they look relatively close to their video game counterparts.

There aren’t a lot of other details about the show just yet, but this is Amazon’s official description:

The God of War series storyline follows father and son Kratos and Atreus as they embark on a journey to spread the ashes of their wife and mother, Faye. Through their adventures, Kratos tries to teach his son to be a better god, while Atreus tries to teach his father how to be a better human.

That sounds a lot like the recent soft reboot of the franchise, which started with 2018’s God of War and continued through Ragnarök in 2022. For the Amazon series, Ronald D. Moore, best-known for his work on For All Mankind and Battlestar Galactica, will serve as showrunner. The rest of the cast includes: Mandy Patinkin (Odin), Ed Skrein (Baldur), Max Parker (Heimdall), Ólafur Darri Ólafsson (Thor), Teresa Palmer (Sif), Alastair Duncan (Mimir), Jeff Gulka (Sindri), and Danny Woodburn (Brok).

While production is underway on the God of War series, there’s no word on when it might start streaming.