Adtech antitrust trial judge blasts Google’s business practices

Google’s legal troubles appeared to worsen yesterday as the judge of the adtech antitrust trial delivered sharp criticism of the tech giant, signaling possible consequences for its business practices.

What happened: During the pre-trial motion hearings, Judge Leonie Brinkema sharply criticized Google for its handling of privileged information, labeling the company’s actions as “absolutely inappropriate and not proper.” 

The court singled out the so-called ‘Walker Memo,’ containing what she referred to as “incredible smoking guns,” as evidence of potential wrongdoing.

The ‘Walker Memo’ refers to a 2008 memo by Google’s chief legal officer, Kent Walker, who created a “communication with care” policy. This policy advised employees to switch sensitive litigation-related chats to “history off” mode, automatically deleting chats within 24 hours, according to court documents.

The judge also condemned Google’s practice of auto-deleting chats, mockingly referred to by employees as “Vegas mode,” implying that the company may have intentionally destroyed evidence.

Why we care. If Google is found to have engaged in anticompetitive practices, it could lead to significant changes in the digital advertising landscape. That could include changes in pricing and bidding models, and possibly increased competition from other platforms.

The big picture: This trial, one of the most significant antitrust cases in decades, could reshape the landscape for the media and tech industries.

The judge’s remarks suggest that Google’s internal practices could heavily influence the trial’s outcome, with potential inferences drawn against the company as witnesses testify.

What to watch: With less than two weeks until the trial begins, Google faces mounting scrutiny. The judge’s familiarity with related antitrust rulings, including a recent unfavorable decision against Google, sets the stage for what could be a pivotal moment in the company’s legal battle.

Dig deeper.

• Google’s $2.3 million check secures bench trial in adtech antitrust case
• Google will face a new U.S. antitrust jury trial in September

U.S. vs. Google. This is the second major antitrust trial for Google within the year. Earlier this month, in the U.S. vs. Google antitrust trial, a federal judge ruled that Google illegally monopolized search and search advertising markets, especially by paying $20 billion annually for default search status on iPhones.