Google Confronts Second Antitrust Lawsuit Over Ad Tech Practices
The Justice Department seeks to dismantle Google's ad tech empire, claiming that its monopoly affects publishers and distorts the digital ad market
Google, the tech behemoth, is facing a second big antitrust case, this time focussing on its advertising technology. The US Department of Justice and numerous states accuse the corporation of monopolising the ad tech business and exploiting its position to take excessive fees from publishers. This case comes after a recent legal verdict that declared Google's search engine an illegal monopoly, boosting the stakes in the company's ongoing legal battles.
The trial, which began Monday in Alexandria, Virginia, focusses on Google's ad tech practices. The government claims that Google has monopolised both the 'buy' and 'sell' sides of online advertising, taking up to 36 cents for every dollar spent by advertisers and publishers. This control purportedly damages publishers such as The New York Times and Gannett, pushing them to boost advertising, implement paywalls or even close their doors. The Justice Department contends that Google's methods degrade news websites' financial viability, forcing them into unsustainable business models.
Google, on the other hand, claims that the government's case is based on obsolete advertising techniques, focussing solely on display and banner ads, which have declined as mobile app usage, social media platforms such as TikTok and streaming services have grown in popularity. Google also points out that their ad tech revenues have fallen from USD 31.7 billion in 2021 to USD 31.3 billion in 2023, casting doubt on the premise of an increasing monopoly.
The trial was originally scheduled for a jury, but it was changed to a bench trial after Google paid more than USD 2 million to settle one of the jury-related claims. The lawsuit will now be decided solely by US District Judge Leonie Brinkema, who has extensive expertise in complicated civil trials, including technical matters involving patent infringement.
This trial follows a previous legal loss for Google in Washington DC, when a judge determined that its search engine constituted an illegal monopoly, aided in part by billions of dollars paid to corporations such as Apple to ensure Google remained the default search provider. While that lawsuit awaits resolution, analysts believe the Virginia trial might be far more damaging to Google, with potential remedies including a forced spinoff of its advertising technology company.
