In a big win, Google avoids a breakup of its ad tech business
A federal judge ruled Wednesday that Google must make changes to address its advertising technology monopoly but would not need to break up that business, as the company staved off the most extreme measures to curb its power. Judge Leonie M. Brinkema, who sits on the US District Court for the Eastern District of Virginia, issued her sealed decision after finding last year that Google broke the law to protect its dominance over the largely invisible system of technology that places ads on pages across the web. The ruling was previewed in a short order posted by the court. The Justice Department had requested that Google sell off parts of its business, which it said was necessary to check the company’s power. But the judge declined to grant the request. She instead ordered Google to change its business practices to benefit competitors, though she did not provide specifics. The decision ensures that Google’s power over the internet will be largely unchanged as it moves to dominate a technological era defined by artificial intelligence. Despite two federal court rulings in major government lawsuits declaring the tech giant a monopolist — the other in search — judges have not ordered significant structural changes to its $4.1 trillion business. Brinkema’s decision to force Google to enforce some remedies is likely to have a limited effect on the tech giant’s business overall, analysts said. Google’s ad tech business brought in $30 billion last year, or about 8 percent of the revenue for its parent company, Alphabet. Its ad tech revenue has declined for 16 straight quarters, and analysts estimate it accounts for less than 1 percent of the company’s profit. “We’re very pleased the court rejected the DOJ’s proposal to break apart tools that help small businesses reach new customers and grow,” said Lee-Anne Mulholland, a vice president of regulatory affairs at Google. A spokesperson for the Justice Department said in a statement that its antitrust division was “pleased that the court ordered substantial relief” in the case and that it was “evaluating appropriate next steps.” — NEW YORK TIMES
Former longtime 7News reporter lands at another Boston station
Less than a month after announcing her departure from the station, longtime 7News reporter Kimberly Bookman said this week that she will continue to cover Boston, joining NBC10 as of Sept. 14. Bookman announced in a LinkedIn post Tuesday that she was joining the NBC10 Boston team. Her last day on air with 7News was Aug. 4, after announcing her decision to leave the station after 12 years. Bookman, a Needham native, has been reporting in Boston since joining 7News in 2014. She said she is excited to continue reporting in the city as part of NBC10’s news team. “I am going to continue to do what I love, in the city that I love,” she wrote on LinkedIn. “I’m excited to join the team at NBC10 Boston. They are investing in the future of local news and in the many ways people are consuming and connecting to what’s going on.” “How we reach an audience is changing and I want to be part of the evolution,” Bookman wrote. — BOSTON.COM
Justice Dept. sides with OpenAI in New York Times copyright suit
The Justice Department told a Manhattan federal court that it was in the national interest for the judge to find that OpenAI did not violate copyright law when it used articles by The New York Times and other publishers to develop artificial intelligence systems. The filing late Tuesday was the first time the Justice Department weighed in on the use of copyrighted material by AI companies, which has led to several lawsuits, including one brought by the Times. The Justice Department argued that developing AI was critical to national security, and that training AI systems sufficiently transformed the written works to new material allowed under copyright law. It said the benefits of AI “far outweigh any competitive harm.” The government’s intervention is an escalation in the landmark litigation that could determine whether OpenAI violated the law when it was developing its AI systems and had harmed the news industry and other content creators. Stanley Woodward Jr., the associate attorney general for the Justice Department, called the filing “a historic statement of interest” in a statement posted on social media. Graham James, a spokesperson for the Times, said in a statement that the Justice Department was siding with a handful of “trillion-dollar AI companies” at the expense of American creators. Representatives for OpenAI did not respond to a request for comment. Microsoft, OpenAI’s partner and a defendant in the Times’ lawsuit, declined to comment. — NEW YORK TIMES
Uber cuts 10 percent of employees in sweeping reorganization
Uber is laying off roughly 10 percent of its workforce, totaling about 3,300 people, as the ride-hailing company restructures to become “simpler and faster,” CEO Dara Khosrowshahi said Wednesday. The layoffs are set to affect 20 percent of rank-and-file employees who are seven or more layers below Khosrowshahi, he said. He added that Uber would increase the number of employees under each manager by cutting teams that have only one to two workers by half, which would flatten the company. “A leaner organization will mean clearer ownership, faster decisions, and more time spent building rather than coordinating,” Khosrowshahi said in a message to employees. “It will also generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years.” He said Uber’s revenue has nearly tripled over the past five years, but rapid growth has introduced “more layers, more coordination, and more fragmented ownership.” In Wednesday’s announcement, Uber said it would also consolidate its delivery operations and some engineering and science teams. — NEW YORK TIMES
Saturday Evening Post will stop printing after 205 years
For more than two centuries, The Saturday Evening Post has chronicled American life in its pages, enshrining a homespun national identity and printing some of the nation’s greatest writers. That’s changing next year. The magazine’s January issue will be its last in print, according to Joan SerVaas, the president and publisher. In a letter to the Post’s 50,000 subscribers in the most recent issue, she attributed the decision to a combination of “rising production costs, declining advertising revenue, and shifting reader habits.” “We’ve been dealing with it for over a decade,” SerVaas said in an interview. “We continued hoping it would turn around or life would get better. Now we’re pretty sure it’s not going to get any better.” The magazine, which debuted in 1821, will continue to publish new articles and fiction online. The archives, which will be preserved online, contain news articles as well as poetry, fiction, and art, including iconic images by Norman Rockwell. — NEW YORK TIMES
Employer health costs are expected to spike in 2027
Large and small employers are bracing for what looks to be the sharpest increase in health care costs in more than two decades. The cost per worker is projected to go up an average of 11 percent next year, or somewhat lower if workers’ insurance benefits are reduced, according to a US survey released Wednesday. The employers’ final costs, after they make changes to health plans, are still expected to increase about 8 percent next year, the steepest since 2003, according to Marsh, the benefits consultant formerly known as Mercer. More than a third of the 1,800 employers surveyed said they anticipated that costs would rise at least 10 percent after making cuts. — NEW YORK TIMES
Southwest to launch first-ever airport lounges to broaden premium appeal
Southwest Airlines on Wednesday unveiled plans to open its first-ever airport lounges, as the carrier steps up efforts to attract higher-spending premium travelers and diversify revenue streams. The airline, which has been working to shed its low-cost image and boost ancillary revenue through assigned seating, extra-legroom seats, and other product enhancements, said it would partner with JPMorgan Chase to launch its first airport lounges. Airport lounges have become a powerful attraction for travelers as they offer a quieter place to work or relax, complimentary food and drinks, and a more seamless airport experience. For airlines, they help lock in customers, support premium fares, and drive spending on lucrative co-branded credit cards. Southwest will roll out a new Chase-issued co-branded credit card in 2027 to provide customers access to its airport lounge network. It initially plans to open four lounges in Austin, Baltimore, Honolulu, and Nashville. Construction is underway, with the lounges expected to begin opening in late 2027. — REUTERS