The ongoing trial in Alexandria, Virginia has brought to light the extent of Google’s control over online advertising technology. Prosecutors have accused Google of using monopolistic tactics to stifle competition and maintain its stronghold in the market.
According to the Justice Department prosecutor, Google has systematically eliminated competitors through acquisitions, locked customers into using its products, and controlled how transactions occur in the online advertising market. These tactics have allowed Google to crush competition and establish itself as the dominant player in the industry.
In response to the allegations, Google’s lead attorney argued that the case is based on outdated information and that Google’s tools are now interoperable with its rivals. She highlighted the competition Google faces from other technology companies such as Amazon and Comcast as digital ad spending shifts to apps and streaming video.
The outcome of the trial could have significant implications for Google’s business. If found guilty of antitrust violations, Google may be required to divest itself of certain assets, such as its Google Ad Manager platform, which includes its publisher ad server and ad exchange.
Research by stock analyst Wedbush shows that Google’s ad tech tools accounted for a substantial portion of the company’s gross revenue in 2020. Ad Manager, in particular, represented a significant portion of Google’s revenue and operating profit that year.
The Google antitrust case is just one of several legal challenges facing Big Tech companies. The Justice Department recently won a case against Google over its dominance in online search, and is also suing Apple. The Federal Trade Commission is pursuing cases against Facebook parent Meta Platforms and Amazon.
The Google antitrust trial is a high-stakes battle that could reshape the landscape of online advertising technology. The outcome of the trial will not only impact Google’s business but may also set a precedent for how other Big Tech companies are regulated in the future. It remains to be seen how Judge Leonie Brinkema will rule in this closely watched case.