In a significant legal challenge, Google is now on trial over allegations that its advertising business operates as a monopoly, following a prior ruling that its search engine violated antitrust laws.
This latest trial, spearheaded by the US Department of Justice (DOJ) and supported by 17 states, aims to prove that Google used unfair practices in its $31 billion advertising technology business to stifle competition and maintain dominance.
The lawsuit focuses on Google’s ad tech “stack,” which connects website publishers with advertisers, determining which banner ads appear across countless websites. The DOJ contends that Google’s monopolistic control of this technology has resulted in higher prices for advertisers and reduced revenue for publishers, impacting the entire online advertising ecosystem.
In its opening statements, the DOJ accused Google of engaging in anticompetitive mergers, auction manipulation, and self-serving practices that allowed the company to maintain its stronghold over the advertising market. According to the DOJ, Google’s dominance harms online publishers and advertisers alike, with one government attorney describing the company’s control as a “trifecta of monopolies.”
The trial marks another chapter in the ongoing scrutiny of Google’s business practices. This case follows a major court decision that deemed Google’s search engine an illegal monopoly, heightening the stakes for the tech giant. At the heart of the current case is whether Google’s advertising tools unfairly limit competition and if the company should be forced to break up its ad tech business.
Google, however, has denied these accusations, arguing that the online advertising industry is vibrant and competitive. It claims the DOJ’s case overlooks the role of other significant players like Amazon, Meta, Microsoft, and TikTok. Google also warns that dismantling its ad tech business could harm small businesses that rely on its affordable and effective tools. According to Google, competition in the advertising market is healthy, and the company’s market share is not as overwhelming as the DOJ suggests.
The outcome of the trial could have far-reaching implications. A ruling against Google may force the company to divest its ad tech business, fundamentally altering the online advertising landscape. Proponents of breaking up Google argue it would restore competition, while the company insists such a move would benefit other large tech giants without improving market conditions.
The trial, expected to last several weeks, will feature testimony from high-profile witnesses, including media executives and Google employees.
CNN and ARS Technica contributed to this report.
