Podcast Summary: The Monopoly Report
Episode 39: The Google Search Antitrust Remedies
Release Date: July 23, 2025
Host: Alan Chapell | Guest: Megan Gray

Introduction

In Episode 39 of The Monopoly Report, host Alan Chapell engages in a comprehensive discussion with Megan Gray, a seasoned tech lawyer and the founder of Gray Matters. This episode delves deep into the intricacies of the ongoing Google Search Antitrust Remedies trial, exploring its implications for the digital media landscape.

Overview of the Google Search Antitrust Trial

Alan sets the stage by summarizing the outcome of the liability trial:

Alan Chapell [02:09]: "Last August, after a 10-week bench trial, Judge Mehta concluded that Google possessed monopoly power in two markets, the general search market and the general search text advertising markets."

Megan concurs, emphasizing the trial's public understanding due to Google's pervasive presence:

Megan Gray [02:59]: "I think the ad tech trial was massively overshadowed and not for great reasons. It was just that the ad tech trial was so difficult to understand, whereas everybody uses Google search."

Bifurcated Trials and Remedy Discussions

The conversation shifts to the structure of the trial process. Alan inquires about the unusual bifurcation of the remedies trial from the initial liability trial:

Alan Chapell [03:46]: "Can you just give us a quick overview?"

Megan explains:

Megan Gray [04:10]: "Most trials are just trials, they're not bifurcated. So it is unusual to have a bifurcated trial except in an antitrust case... the bifurcation was very weird."

She elaborates on the DOJ's limited initial contemplation of remedies, highlighting the complexity and potential inadequacy of initial remedy proposals.

DOJ's Approach and Google's Strategy

Alan probes into the DOJ's changing stance on remedies and Google's response:

Alan Chapell [06:34]: "Can you point to a place in time where the DOJ seemed to be thinking differently about that?"

Megan responds:

Megan Gray [06:19]: "I don't think DOJ was seriously thinking about remedy until the last month of the liability trial..."

Discussing Google's remedy proposals, Megan critiques them as ineffective:

Megan Gray [10:02]: "Google's remedy proposal was we will continue to do those contracts, but we will have them with only one-year terms..."

Alan likens Google's approach to a lowball offer, to which Megan disagrees, providing detailed insights into Google's strategic maneuvers to delay meaningful remedies.

Google's Strategic Maneuvers and Potential Outcomes

The discussion delves into the broader strategy behind Google's negotiations. Megan compares Google's tactics to historical antitrust cases, suggesting that prolonged legal battles can damage reputations and impede future innovations:

Megan Gray [13:46]: "I do think it is true. You have to go back to this is what happened with AT&T... eventually everybody... was sick of it..."

Alan expresses concerns about Google's multifaceted approach across various fronts such as ad tech, cloud, and AI, indicating the complexity of the case.

Technical Committees and Remedy Implementation

Alan raises concerns about the efficacy of technical committees in enforcing remedies:

Alan Chapell [20:14]: "What's your overall level of confidence that a technical committee can actually accomplish some of these complicated goals?"

Megan provides a cautiously optimistic view:

Megan Gray [20:41]: "I think it will work. I think it can work. I want to have a huge asterisk there, which is that it's still fricking hard."

She emphasizes the necessity of substantial resources and dedicated teams for technical committees to function effectively, drawing parallels with the Microsoft antitrust case.

Challenges and Surprises in the Trial

Megan shares her unexpected observations from the remedies trial, particularly the focus on Chrome divestiture:

Megan Gray [25:45]: "I was surprised how much time we talked about divestiture of Chrome going into the remedy trial."

She highlights the judge's initial lack of understanding regarding certain nuances, necessitating detailed explanations:

Megan Gray [28:28]: "He was like, wait, what? Why? I did not understand that nuance from the proposal."

Additionally, Megan criticizes the DOJ's strategic omission of Google's unethical behaviors during the trial, contrasting it with their approach in the ad tech case.

Predictions and Future Implications

Alan seeks Megan's projections on the trial's outcome and timeline:

Alan Chapell [30:08]: "Do you have any predictions for how this is going to play out and how long it's going to take?"

Megan anticipates a judge's decision by August, followed by potential appeals that could extend the case for another year or more:

Megan Gray [30:16]: "The judge himself has said that he's going to issue a decision by or in August."

She predicts that most of DOJ's remedy proposals will be upheld, including the divestiture of Chrome, despite her reservations about certain aspects.

Conclusion

The episode culminates with Megan emphasizing the complexities of enforcing remedies in antitrust cases and expressing cautious optimism about the technical committee's role. Alan reflects on the insights shared, acknowledging the challenges ahead and anticipating further developments in the Google antitrust saga.

Key Takeaways:

• Bifurcated Trials: The separation of liability and remedies trials in antitrust cases adds complexity but is sometimes necessary for thorough deliberation.

• DOJ vs. Google Strategies: While DOJ presents comprehensive remedy proposals, Google's strategic delays and partial commitments hinder effective antitrust resolutions.

• Technical Committees' Role: Successful enforcement of remedies hinges on well-resourced and dedicated technical committees, as evidenced by historical precedents.

• Future Outlook: The case is expected to undergo prolonged legal battles with potential appeals, delaying the implementation of remedies and affecting the digital media landscape for years to come.

Notable Quotes:

• Megan Gray [02:59]: "I think the ad tech trial was massively overshadowed and not for great reasons. It was just that the ad tech trial was so difficult to understand, whereas everybody uses Google search."

• Megan Gray [10:02]: "Google's remedy proposal was we will continue to do those contracts, but we will have them with only one-year terms..."

• Megan Gray [25:45]: "I was surprised how much time we talked about divestiture of Chrome going into the remedy trial."

• Megan Gray [20:41]: "I think it will work. I think it can work. I want to have a huge asterisk there, which is that it's still fricking hard."

This episode provides an in-depth analysis of the Google Search Antitrust Remedies trial, offering listeners a nuanced understanding of the legal strategies, potential outcomes, and broader implications for the digital advertising ecosystem.