In a legal filing meant to defend its advertising empire, Google may have inadvertently said what many in the industry have long suspected: the open web is in serious decline. That’s the phrase the company used in its September 5 court response as it fights against a proposed breakup of its ad business. At stake is whether Google must divest its AdX advertising exchange—an engine that has helped it dominate online display advertising for years.

But in trying to save itself from being carved up by the Department of Justice, Google made an unexpected pivot. After years of insisting that traffic from search is strong and the web is flourishing, the company is now warning that forced divestment could speed up what it calls the “rapid decline” of the open web.

So which is it? A healthy ecosystem driving billions of dollars in value—or a fragile economy on the brink of collapse?  [Read more…]