Google on Antitrust Trial in the US Over Its Ad Business

Google faces a second antitrust lawsuit in the US over its ad business that connects advertisers and online publishers. The Department of Justice (DoJ) and 17 states allege that Google monopolizes the technology stack publishers and advertisers depend on to sell and buy ads, allowing it to overcharge both sides.

“One monopoly is bad enough, but a trifecta of monopolies is what we have here,” said the DoJ attorney Julia Tarver Wood at the first trial on September 9th, referring to Google’s publisher ad server business, its advertising exchange AdX, and its advertiser ad network. Wood further claimed that Google owns at least half and up to 91% of the shares in each business. “The rules are set such that all roads lead back to Google,” she concluded.

The DoJ said Google has engaged in several anticompetitive mergers, including DoubleClick and AdMeld acquisitions, to gain control in each part of the ad-tech stack.

Additionally, Google used self-dealing and auction manipulation to squeeze the competition and establish unfair dominance. These practices allegedly enabled Google to control the supply, demand, and point of exchange of digital advertising, causing website owners to earn less and advertisers to pay more.

Google denied having a monopoly over online advertising, describing the industry as highly competitive. According to the tech giant, the antitrust lawsuit is narrowly focused on website advertising, excludes rivals such as Amazon, Meta, Microsoft, and TikTok, and overstates its market share.

Considering the broader competition, Google’s share of the ad exchange market dropped from 34% to 17%, according to Google’s attorney Karen Dunn. She also added that breaking up its current ad business could benefit other Big Tech moguls. Google defended its practices by saying advertisers are free to choose which ad tools they’ll use and advertise on third-party platforms like Instagram and Netflix.

Both sides gave their opening statements in front of Judge Leonie Brinkema, who previously denied Google’s motion to shut the case.

Just weeks before this trial, Google lost another antitrust case in which the judge deemed its search business an illegal monopoly.

The new antitrust case could have even more negative consequences for Google’s ad business, which is the company’s primary source of revenue, worth $31 billion. Unlike in the first antitrust case, this time, the DoJ is seeking specific remedies, including forcing Google to sell parts of its online advertising business. The outcome of this case could also affect the entire economics of running a website.