AllYouCanTech

Analysts Caution DOJ That Google’s $95 Billion Advertising Technology Enterprise Might Be Excessive to Split Off

### Google Faces Second Major Antitrust Trial: DOJ Targets Ad Tech Monopoly

In September 2024, Google found itself embroiled in its second significant antitrust trial within a year, as the U.S. Department of Justice (DOJ) accused the tech powerhouse of monopolizing the online advertising sector. The trial commenced at the Albert V. Bryan U.S. Courthouse in Alexandria, Virginia, concentrating on Google’s dominance in the ad tech industry, particularly via its Google Ad Manager platform. This case could have extensive implications for the digital advertising landscape and the future of competition within the tech sector.

#### The Core of the Case: Google Ad Manager

At the heart of the DOJ’s argument is Google Ad Manager, a platform that links publishers’ ad servers with ad exchanges. Google Ad Manager was introduced following Google’s $3 billion acquisition of DoubleClick and AdX in 2008. The DOJ asserts that this acquisition enabled Google to seize control of the ad tech market by connecting its publisher ad servers to its ad exchanges, effectively coercing publishers into paying elevated fees. The DOJ contends that Google Ad Manager currently caters to 90% of publishers utilizing ad tech tools to monetize their online ad inventory, endowing Google with monopoly power over the sector.

In her introductory statement, DOJ attorney Julia Tarver Wood asserted that Google’s acquisitions, including DoubleClick, empowered the company to manipulate ad auction regulations to maximize profits while suppressing competition. The DOJ claims that Google has monopolized three critical markets: publisher ad servers, advertiser ad networks, and ad exchanges.

#### Google’s Counterargument: Narrow Market Definitions

Google has refuted the DOJ’s allegations, claiming that the government’s market definitions are excessively constrained. The company highlighted that the Federal Trade Commission (FTC) had previously investigated and sanctioned the DoubleClick merger in 2007 without any stipulations. At that time, the FTC determined that the acquisition was improbable to diminish competition in any pertinent antitrust market.

Nonetheless, the DOJ’s complaint argues that the DoubleClick acquisition provided Google with a dominant position over the tools publishers employ to sell advertising, enhancing its existing advertiser tool, Google Ads. The DOJ affirms that this established the groundwork for Google’s exclusionary practices in the ad tech arena.

#### Possible Solutions: Divesting Google Ad Tech?

The DOJ has suggested various potential solutions to combat Google’s purported monopolistic practices. At the very least, the DOJ has requested the court to mandate Google to divest Google Ad Manager, which might encompass valuable products such as Google’s Display and Video 360 (DV360) platform. In a more drastic outcome, the court could require Google to divest its entire ad tech division.

However, analysts have expressed doubts regarding the practicality of such solutions. The precise value of Google’s ad tech division remains uncertain, with estimates differing significantly. Some analysts propose that Google’s ad tech sector could be valued at as much as $95 billion, which complicates the prospect for any one buyer to acquire it. Terence Kawaja, CEO of Luma Partners, a strategic advisory firm, indicated that Google might need to redistribute its ad tech operations to shareholders instead of executing a sale.

#### Testimony from News Corp: “Held Hostage” by Google

To bolster its case, the DOJ has summoned various witnesses, including publishers and competitors of Google who allege to have suffered from Google’s purportedly anticompetitive behaviors. One of the most impactful testimonies was provided by Stephanie Layser, a former vice president of ad tech for News Corp. Layser testified that in 2017, News Corp stood to lose $9 million if it opted to leave Google’s advertising platform. She described the experience as News Corp being “held hostage” by Google.

Layser clarified that the substantial switching costs and Google’s unwillingness to negotiate made it challenging for publishers to make well-informed purchasing choices. She also indicated that News Corp conducted an internal assessment to determine if it could transition to another ad platform, but the anxiety of losing Google’s ad demand was too significant. By the time she departed from News Corp in 2022, as much as 80% of the company’s revenue was derived from Google’s AdX platform.

#### Google’s Competitors: Struggling to Keep Up

The DOJ also brought in Andrew Casale, president and CEO of Index Exchange, a competing ad exchange. Casale testified that even when Index Exchange lowered its fees to zero, it still could not effectively compete with Google. Casale contended that it is “virtually impossible” to achieve scale in a market that Google dominates, further substantiating the DOJ’s claims of monopolistic conduct.

#### AI’s Role in Future Antitrust Challenges

While the current trial centers on Google’s ad tech operations, the DOJ is also monitoring the company’s expanding reach in artificial intelligence (AI). Democratic senators have urged the DOJ and the FTC to scrutinize the potential anticompetitive threats posed by Google’s generative AI features, such as AI Overviews. Publishers have already expressed concerns that Google’s supremacy in ad tech has adversely affected journalism, and they fear

Examination of Ancient Easter Island Genomes Shows No Indication of Past Population Decrease

**The Mysterious Past of Rapa Nui: Fresh Genetic Perspectives on Easter Island’s History**

Rapa Nui, widely recognized as Easter Island, ranks among the most isolated inhabited locations on the planet. Situated in the southeastern Pacific Ocean, this island has captivated historians, archaeologists, and scientists for centuries. Upon their arrival in the 18th century, Europeans were astounded to discover a vibrant civilization that had built the renowned *moai*—enormous stone statues that have since become emblematic of the island. Nevertheless, the roots of the Rapa Nui people, their relationships with other cultures, and the destiny of their society have remained topics of persistent discussion.

Recent genetic investigations have unveiled new understandings regarding Rapa Nui’s history, illuminating aspects of the island’s demographic expansion, its cultural exchanges, and the enduring debate surrounding the potential influence of ecological collapse on its narrative.

### Polynesian Heritage and the Decline of the South American Hypothesis

For an extended period, there was speculation that the native inhabitants of Rapa Nui may have descended from South America. This hypothesis stemmed mainly from the island’s proximity to the continent and the discovery of certain crops, such as sweet potatoes, deeply rooted in the Americas. However, contemporary genetic analyses have definitively established that the original settlers of Rapa Nui were part of the expansive Polynesian migration that traversed the Pacific region.

The Polynesians were exceptional navigators, capable of crossing vast oceanic distances by employing advanced knowledge of celestial bodies, wind patterns, and ocean currents. Genetic information from the indigenous population of Rapa Nui substantiates their Polynesian lineage, ultimately disproving the South American origin theory. Nonetheless, this does not imply the absence of any interactions between Rapa Nui and the Americas, which we shall examine further.

### Novel Genetic Findings: Gradual and Consistent Population Increase

One of the most debated theories regarding Rapa Nui’s history is the ecological collapse hypothesis, often dubbed as the “ecocide” theory. This proposition suggests that the island’s population surged to an unsustainable level, resulting in deforestation, soil degradation, and eventual societal disintegration. However, recent genetic evidence disputes this perspective.

Researchers recently examined the genomes of 15 individuals whose remains predate European engagement. These specimens, preserved at the Muséum National d’Histoire Naturelle in France, were analyzed with the assistance of the Rapa Nui community. The genetic findings indicated that the population on the island increased gradually and consistently over time, with no signs of a significant population bottleneck that might imply a disastrous ecological collapse.

The conclusions drawn from the study suggest that Rapa Nui’s populace never approached the often-cited figure of 15,000 individuals considered a threshold for ecological turmoil. Instead, the estimate points to a peak of around 3,000 individuals by the time Europeans arrived in the 18th century. This points to a stable societal structure prior to the arrival of outsiders, who introduced diseases and other disruptive factors that severely affected the indigenous community.

### Native American Genetic Material: Proof of Early Interactions

Among the most captivating discoveries from the genetic analysis is the identification of Native American DNA within the genomes of pre-contact Rapa Nui individuals. Around 10% of their genetic composition appears to have originated from a Native American group, particularly from the central Andes region of South America. This represents the highest recorded percentage of Native American ancestry found within any Polynesian demographic.

This presence of DNA prompts intriguing inquiries regarding early interactions between Polynesians and Native Americans. Prior studies have indicated that some Polynesian groups displayed signs of Native American ancestry, but the evidence was frequently ambiguous. The new data from Rapa Nui offers the most compelling evidence to date supporting the notion of contact between these two populations prior to the arrival of European navigators in the Pacific.

### Timing of This Contact

Establishing the timeline for when contact occurred between Polynesians and Native Americans poses challenges, especially given the complexities associated with carbon dating the remains. Nonetheless, researchers can approximate the timing of the genetic interchange by assessing the dimensions of Native American DNA segments within the Rapa Nui genomes. Over time, these segments diminish in size as they undergo fragmentation through recombination during reproduction. By evaluating the segment sizes, scientists can infer when the Native American genetic material became part of the Rapa Nui demographic.

The findings indicate that this interaction likely took place between 1246 and 1425 CE, which aligns with the estimated period of Rapa Nui’s initial settlement around 1250 CE. This raises several potential scenarios regarding how this contact may have transpired. One theory posits that the Polynesian settlers of Rapa Nui engaged in trade or other interactions with Native American communities upon their arrival. Alternatively, it is possible that Polynesians established contact with Native Americans before arriving at Rapa Nui, subsequently bringing this genetic lineage with them.

### The Prospects for Rapa Nui Research

While the newly uncovered genetic information offers significant

“PS5 Pro Signals the Conclusion of the Game Console Disc Drive Age”

# The Diminishing Role of Disc Drives in Gaming Consoles: Embracing a Digital Era

As the consumption of digital media accelerates, the gaming sector is adapting alongside it, evident in its marked move away from physical formats. Sony’s recent unveiling of the **PlayStation 5 Pro** (PS5 Pro) highlights this change, as the latest console will solely feature a **disc-drive-free model**. This represents a pivotal point in the evolution of gaming, where the traditional disc drive is now an optional component, indicating a larger industry transition towards digital-exclusive gaming.

## The PS5 Pro: Embracing a Disc-Free Future

With the introduction of the PS5 Pro, many quickly observed one key absence: the integrated disc drive. Unlike the initial PlayStation 5 (PS5), which provided both a standard model with a disc drive and a digital-only version, the PS5 Pro is adopting a new strategy. The **PS5 Pro** will only come in a **disc-less version**, with the option to buy an external disc drive for $80 separately. This external drive, first launched for the **PS5 Slim Digital Edition** in 2023, now represents the sole method for accessing physical games on the PS5 Pro.

Sony’s decision clearly reflects the company’s vision of gaming’s future: **digital downloads**. Indeed, the shift toward digital gaming has been intensifying over the years, and the disc-free design of the PS5 Pro mirrors this trend.

## The Broader Transition from Physical Media

Sony isn’t alone in moving toward disc-less consoles. **Microsoft** has also made significant advances in this direction. The tech giant recently revealed the first **disc-less Xbox Series X** model, which will retail for $50 less than the standard version. Although a new “Galaxy Black” Xbox Series X model with a disc drive will be sold in limited stock, it is evident that Microsoft is increasingly favoring **digital-only gaming**.

This evolution stands in stark contrast to the early 2010s when Microsoft entertained the idea of a disc-free version of the **Xbox One**, yet abandoned the plan due to bandwidth and game size concerns. Now, those worries have largely faded as internet capabilities have improved and digital game sizes have become more feasible.

## The Data Supports This Change

The pivot away from physical media is not merely a passing trend—it is substantiated by substantial evidence. Sony’s data illustrates that **digital downloads** currently dominate game sales. In the 2023 fiscal year, **70 percent** of PlayStation’s total game sales were digital, escalating to **80 percent** in the first quarter of 2024. This marks a significant rise from just a few years prior when digital sales constituted 53 percent of PlayStation game sales in 2019 and only 19 percent in 2015.

This pattern is echoed throughout the gaming industry. Numerous third-party publishers, including **Capcom**, report that **90 percent** of their sales are now derived from digital games. In the UK, **82 percent** of sales for major new releases like **Street Fighter**, **Final Fantasy**, and **Diablo** were digital as of June 2023. Even blockbuster titles such as **Alan Wake 2** have chosen digital-only launches, reinforcing the departure from physical game discs.

## The Reasons Behind the Change

Several factors explain why both gamers and console manufacturers are opting for digital over physical media:

1. **Convenience**: Digital downloads provide unmatched ease of access. Gamers no longer have to drive to a store or wait for a physical copy to arrive. With digital purchases, games can be downloaded and played almost immediately.

2. **Cost Efficiency**: For console makers, creating digital-only consoles is a more economical choice. Eliminating the disc drive allows companies to cut production costs and pass those savings on to consumers. For instance, the disc-less Xbox Series X is priced $50 lower than its standard counterpart.

3. **Evolving Consumer Preferences**: As internet speeds have improved and digital platforms like **PlayStation Store** and **Xbox Live** have flourished, gamers increasingly favor digital downloads as their primary means to acquire games. The emergence of subscription services like **Xbox Game Pass** and **PlayStation Plus** has also played a role in this transition, granting gamers access to extensive libraries without requiring physical copies.

4. **Environmental Considerations**: Digital downloads boast a smaller environmental impact compared to physical discs, which necessitate production, packaging, and shipping. As the gaming industry becomes more aware of its ecological footprint, digital gaming presents a more sustainable option.

## The Prospects for Physical Media

Although the trend toward digital gaming is clear, it’s crucial to recognize that physical media won’t vanish completely—at least not just yet.