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Court to consider if Google’s ad technology qualifies as monopolistic behavior

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Court to consider if Google’s ad technology qualifies as monopolistic behavior

Alexandria, Virginia — Google is currently engaged in a legal battle against the U.S. Department of Justice, which is accusing the tech giant of monopolistic practices related to its online advertising technology. This trial is set to have its closing statements on Monday as both parties present their final arguments. The outcome will be determined by U.S. District Judge Leonie Brinkema, who is expected to deliver a written verdict by year-end. If deemed guilty of engaging in illegal monopolistic conduct, further hearings will follow to discuss potential punitive measures.

The Justice Department, along with a coalition of states, is advocating for Google to divest its advertising technology business, which contributes significantly to the company’s revenue, generating tens of billions of dollars each year from its base in Mountain View, California. After approximately a month of testimony earlier this year, the central arguments in the case have remained largely unchanged.

The Justice Department claims that Google has constructed and sustains a monopoly in “open-web display advertising,” which primarily includes the rectangular ads displayed at the top and sides of web pages during browsing sessions. Google’s dominance in this sector is pervasive; their technology, known as “DoubleClick,” is widely adopted by news outlets and online publishers, whilst “Google Ads” maintains an extensive array of advertisers eager to promote their offerings to the desired audiences. Complementing these efforts is Google’s AdExchange, which facilitates near-instantaneous auctions that connect advertisers with publishers.

In legal filings, Justice Department representatives argue that Google is more focused on maintaining its monopolistic status than on serving its clients or competing fairly in the market. They assert that Google’s high fees for managing transactions between advertisers and content providers have hindered online revenue generation for news outlets and other content creators.

In response, Google asserts that the government’s argument overly narrows the focus to a limited segment of the online advertising market. When considering a broader scope that includes social media, streaming services, and app-based advertising, Google contends its market share is only about 25% and that this figure has been decreasing due to rising competition.

Additionally, Google maintains that the lawsuit is rooted in the grievances of a few of its rivals and several large publishing entities. In court documents, Google emphasizes that it has committed substantial financial resources to technological advancements aimed at efficiently connecting advertisers with potential consumers. The company argues that it should not be mandated to share its proprietary technology or the fruits of its success with competitors.

The case in Virginia is distinct from another ongoing lawsuit against Google in Washington, D.C., focused specifically on its search engine. In that case, a judge has already determined that Google’s search engine is, in fact, an illegal monopoly; however, the appropriate remedies to impose are yet to be concluded.

Last week, the Justice Department indicated its intention to compel Google to sell its Chrome Web browser among various other sanctions. Google has characterized this request as excessive and disconnected from rational regulatory practices.