The US government is gearing up for a high-stakes trial against tech giant Google, targeting its immensely profitable ad tech business. The trial, set to begin on Monday, will see the Department of Justice presenting its case that Google’s parent company Alphabet has been operating a monopoly in the market.
Last year, Google raked in over $200 billion through the placement and selling of ads to internet users, solidifying its dominance in the digital ad marketplace. While Alphabet argues that its success is a result of the effectiveness of its services, prosecutors claim that the company has used its market power to stifle competition.
Laura Phillips-Sawyer, a professor at the University of Georgia School of Law, emphasized the significance of the case, stating, “It is a really important industry that grabs billions of consumer dollars every year. I think all consumers have an interest in this litigation.”
This is not the first antitrust case Google has faced in the US, as a judge previously ruled its dominance in online search as illegal. The penalties Google and Alphabet will face as a result of that decision remain unclear.
The upcoming trial will see both sides presenting their arguments to US District Judge Leonie Brinkema, who is expected to deliver a verdict. The case follows a recent landmark decision where Judge Amit Mehta ruled that Google had acted illegally to suppress competition in its online search business.
Google has maintained that it dominates the online search and ad tech spaces due to the quality of its products. The company’s defense in the ad tech case echoes this sentiment, with Google stating that users choose to use its advertising technologies because they are effective.
While the DoJ aims to prove its case against Google, experts believe that the complexity of advertising technology could pose a challenge in making a clear monopolization argument. Despite this, regulators in the UK have also expressed concerns about Google’s dominance in the ad tech industry, suggesting potential harm to publishers and advertisers.
As the trial unfolds, the tech giant’s future in the ad tech space hangs in the balance, with potential business model tweaks on the horizon rather than a breakup of the company. The outcome of this trial could have far-reaching implications for Google’s operations and the digital advertising landscape as a whole.
