Google is facing another antitrust trial, this time over its dominance in online advertising technology. The U.S. Department of Justice and several states accuse the tech giant of maintaining a monopoly in connecting publishers and advertisers, allowing it to take up to 36% of ad revenue. Google disputes the claims, arguing that the case focuses on outdated advertising methods, while digital ads have shifted to mobile and social media platforms. The trial, set to last several weeks, follows a recent ruling declaring Google’s search engine a monopoly. Potential outcomes could include breaking up parts of Google’s ad tech business.
Quick Read
- Google faces another antitrust trial over its alleged monopoly in online advertising technology.
- Justice Department and states accuse Google of controlling ad tech that connects publishers and advertisers, allowing the company to take up to 36% of ad revenue.
- Google argues the case is outdated, focusing on desktop web ads, while advertising has shifted to mobile and social media platforms.
- Trial follows a recent ruling that declared Google’s search engine a monopoly.
- Potential remedies include divestitures, which could require Google to sell parts of its ad tech business.
- Government witnesses include executives from publishers, such as The New York Times and Gannett, who argue that Google’s practices have harmed their businesses.
- Trial will be held in a traditional courtroom, with limits on technology and devices.
Google Faces New Antitrust Trial Over Ad Tech Monopoly
Newslooks- ALEXANDRIA, Va. (AP) —
Just a month after being declared a monopoly in the search engine market, Google is now facing another antitrust trial, this time targeting its dominance in online advertising technology. The U.S. Department of Justice and a coalition of states accuse Google of maintaining a monopoly over the technology that connects online publishers with advertisers. This alleged control allows Google to keep up to 36% of the revenue when it brokers ad sales between publishers and advertisers, according to the government.
Google argues that the case is outdated, pointing to the growing dominance of social media platforms like TikTok and streaming services such as Peacock in the advertising space. The tech giant also highlights a decline in revenue from its Google Networks division, which includes the ad services central to the case.
The trial, which begins Monday in Alexandria, Virginia, was initially set to be a jury trial, but Google opted for a bench trial by paying more than $2 million to remove the government’s sole jury claim. The case will now be decided by U.S. District Judge Leonie Brinkema, known for handling complex cases, including terrorism trials and patent disputes.
This lawsuit follows Google’s recent defeat in Washington, D.C., where a judge ruled that its search engine operates as a monopoly, in part due to lucrative deals made with companies like Apple to be the default search engine on iPhones and other devices. Remedies for that case have yet to be determined.
Peter Cohan, a professor at Babson College, suggests that the Virginia case could have an even more significant impact on Google. Potential remedies might include forcing Google to sell off parts of its advertising technology business, which generates billions in revenue annually.
The trial will feature testimony from newspaper executives, including those from The New York Times and Gannett, who argue that Google’s practices have squeezed online publishers, reducing their ad revenue and forcing some to place more ads, introduce paywalls, or even shut down.
Google refutes claims that it charges excessive fees, maintaining that its integrated ad technology ensures faster load times and better security for web pages. The company also emphasizes that customers have the option to use other ad exchanges. As the trial unfolds, it will take place in a traditional courtroom that limits the use of technology, creating challenges for a tech press eager to follow the case. The trial is expected to last several weeks.
