One month after Google was declared an illegal monopoly by a judge, the tech giant now faces another antitrust lawsuit regarding its advertising technology that could potentially lead to the company being broken up. The Justice Department and a group of states allege that Google has created a monopoly in the technology that connects online publishers with advertisers. The government claims that Google’s control of the software on both sides of the transaction allows it to retain up to 36 cents of every dollar in transactions between publishers and advertisers.
Despite Google arguing that the government’s case is outdated due to the evolution of internet usage towards social media and streaming services, the trial over the alleged ad tech monopoly is set to start in Alexandria, Virginia. The case, which was supposed to be a jury trial, will now be decided by U.S. District Judge Leonie Brinkema after Google paid over $2 million to avoid a jury trial.
This lawsuit comes after Google’s recent defeat over its search engine in the District of Columbia, where it was deemed a monopoly. While remedies for that case are yet to be determined, in the current lawsuit, experts suggest that requiring Google to sell off parts of its ad tech business might be a likely outcome, potentially impacting billions of dollars in revenue.
In the Virginia trial, witnesses for the government are expected to include executives from newspaper publishers and online news sites that claim to have suffered from Google’s practices. The government alleges that Google’s high fees have harmed publishers, leading them to either overcrowd their websites with ads, place content behind paywalls, or shut down entirely.
Google denies charging excessive fees and argues that its technology integration ensures fast ad loading and enhanced security. The company also points out the shift in consumer behavior towards mobile apps and social media ads, highlighting that the case’s focus on desktop ads may not be reflective of current trends.
The trial, anticipated to span several weeks, is being held in a courthouse known for its adherence to traditional practices and resistance to technology. With restrictions on cellphones and limited use of computers in the courtroom, the trial might proceed in a manner unfamiliar to a tech-savvy audience accustomed to real-time updates on social media during such proceedings.