Google has begun its defense against accusations of holding an illegal monopoly on online advertising technology. The company’s first witness, Scott Sheffer, a vice president for global partnerships, testified that the online advertising industry is more competitive and complex than portrayed by the government. Google argues that the case focuses too narrowly on a specific type of online ads, overshadowing the competition it faces from social media companies, Amazon, and streaming TV providers.
The Justice Department and a coalition of states assert that Google maintained an illegal monopoly over the technology that facilitates the buying and selling of online ads seen by consumers. The government’s case argues that Google benefits unfairly from automated ad exchanges, preventing publishers from maximizing their revenue and giving Google a significant share of the money from ad purchases.
Witnesses called by the Justice Department detailed how ad auctions are conducted in milliseconds, favoring Google over potential competitors. Media company executives have expressed concerns about Google’s dominance in the field, especially in technology used by publishers to sell ad space and by advertisers to purchase it. The government suggested that Google should be required to divest the part of its business catering to publishers to reduce its dominance.
Sheffer explained Google’s evolution of tools and vetting processes to prevent issues like malware and fraud. The trial began following a judge’s ruling in the District of Columbia declaring Google’s search engine an illegal monopoly. Overseas, regulators have also accused Google of anticompetitive behavior, but the company recently won a significant court decision overturning a previous antitrust fine. Despite the lower revenue generated compared to its search engine, Google’s online advertising technology is estimated to bring in billions of dollars annually.
