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Google’s antitrust trial over online advertising begins today

Google’s antitrust trial over online advertising begins today

U.S. District Judge Leonie Brinkema will preside over the opening arguments in the Justice Department’s antitrust lawsuit against Google, alleging the tech giant has a monopoly on the ad-tech market. This is the second time in less than a year that Google is facing off with federal prosecutors in a courtroom, placing unprecedented U.S. legal pressure on the search giant.

Google’s ad tools at the center of the dispute

The Virginia lawsuit focuses on Google’s dominance in the ad-tech industry, where it facilitates a significant portion of the digital ad transactions that support online publishers. Google provides a platform for publishers to manage their ad space, tools for advertisers, and a marketplace where buyers and sellers can transact.

The Justice Department alleges that Google has employed anti-competitive practices to stifle competition and maintain its market power. The government is seeking to divest Google of its Ad Manager product, a lucrative business that generated $368 million in operating profit in 2020. Google shares a portion of its ad revenue with web publishers.

Google has engaged in a “campaign to condition, control, and tax digital advertising transactions over 15 years,” the Justice Department said in a recent court filing. “This campaign was exclusionary, anticompetitive, and mutually reinforcing.”

‘Out of touch with the market dynamics’

Google has vehemently denied the allegations, asserting that it is under no obligation to share its technological advancements with competitors and that its products are fully compatible with those offered by rivals.

The tech giant attributes its success to a history of innovation, accusing the Justice Department of being out of touch with the market dynamics. While the case centers on display ads, Google argues that user attention has shifted away from websites to apps, social media, and connected TV.

“We will show that ad buyers and sellers have many options, and when they choose Google they do so because our ad tech is simple, affordable, and effective. In short—it works,” the company said in a blog post on Sunday.

What’s next? 

A loss in Virginia could significantly impact Google’s revenue, especially as the company invests heavily in artificial intelligence to compete with Microsoft and numerous startups developing advanced computer systems.

The cases could also lead to changes in how Google reaches consumers and how advertisers promote their businesses online.

The trial is anticipated to last four weeks.

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