A month after a landmark antitrust ruling against it, Google is once again facing off with federal prosecutors in a courtroom. This time, the tech giant is defending its advertising business against accusations of monopolistic practices.
The trial begins on Monday in Alexandria, Virginia, and is expected to last for several weeks. It marks the first tech antitrust trial brought by the Biden administration. The Department of Justice’s previous lawsuit, filed in 2020 when Donald Trump was in the White House, focused on Google’s dominance in internet search.
Google’s ad tools at the center of the dispute
In the new case, the DOJ alleges that Google’s advertising business has engaged in anticompetitive behavior, leading to higher ad prices for customers. The government claims Google has locked in publishers and advertisers to its products, giving it unfair leverage over the market.
Google’s ad tools, which contribute significantly to the company’s $200 billion digital ad business, are at the center of the dispute. The DOJ argues that Google’s control over multiple sides of the ad-selling process violates antitrust laws.
Divestiture of Google Ad Manager?
If successful, the DOJ could seek the divestiture of Google Ad Manager, a tool that allows brands to create and manage ad campaigns. This could have a significant impact on Google’s advertising revenue, which accounts for over three-quarters of its total sales.
“We’ve known for some time that Google would likely face antitrust accusations in court,” said Damian Rollison, SOCi’s director of market insights, “but the recent decision finding Google is, in fact, abusing its dominant market position increases the seriousness of all similar charges. Multiple concurrent lawsuits also add complexity to the situation. The most likely outcome is that Google will ultimately be forced into a settlement that limits its reach in order to make room for competitors.”
The trial is expected to be a complex legal battle, with both sides presenting evidence and arguments to support their claims. The outcome of the case could have far-reaching implications for the tech industry and the future of online advertising.
