A sign at Google headquarters in Mountain View, Calif. is shown on Oct. 8, 2010. (AP Photo/Paul Sakuma, File)
A month after a judge declared Google's search engine an illegal monopoly, the tech giant now faces another significant legal challenge—this time, targeting its advertising technology. The U.S. Department of Justice and several states allege that Google has monopolized the ad tech market by controlling both sides of the process: matching advertisers with online publishers. This dominance, the government claims, allows Google to take up to 36% of the revenue when facilitating ad sales.
Google, however, argues that the government's case is outdated, reflecting an internet era dominated by desktop computers and traditional web browsing. The company points out that advertisers today often prefer reaching their audience through platforms like TikTok and streaming services such as Peacock. Furthermore, revenue from Google's ad tech division, which includes services like AdSense and Google Ad Manager, has actually declined, dropping from $31.7 billion in 2021 to $31.3 billion in 2023.
The trial over these antitrust claims begins Monday in Alexandria, Virginia. Initially set to be a jury trial, Google paid more than $2 million to eliminate a claim that required a jury. As a result, U.S. District Judge Leonie Brinkema, known for her experience in complex civil trials and terrorism cases, will oversee the bench trial. This case comes in the wake of another major setback for Google, where a District of Columbia judge ruled that its search engine is a monopoly, largely sustained by billions paid to companies like Apple to ensure Google is the default search engine on their devices.
Although no remedies have been imposed in the search engine case yet, experts like Peter Cohan from Babson College believe the ad tech lawsuit could be even more damaging to Google. Cohan suggests that breaking up Google's ad business could be a possible remedy, which would significantly impact its annual revenue.
In the Virginia trial, the government's witnesses will include executives from major publishers like The New York Times and Gannett, who argue that Google's practices have harmed their businesses by extracting high fees. The government contends that these fees have forced publishers to either increase the number of ads on their sites, charge for content, or shut down.
Google refutes these accusations, stating that its fees are competitive and its integrated system ensures faster ad delivery and better security. Additionally, the company argues that the case overlooks the shift from traditional web browsing to mobile apps and social media ads, which have dominated the advertising landscape over the past decade.
The trial, expected to last several weeks, is taking place in a courthouse that strictly limits technology use, including a ban on cellphones, which has frustrated tech reporters hoping for live updates. Even lawyers have faced restrictions, with Judge Brinkema denying a request for additional courtroom computers.
