Google's legal battles reached a pivotal stage on Monday as the U.S. Department of Justice (DOJ) concluded its arguments against the tech giant, alleging monopolistic practices in the digital advertising sector. The trial, held in Alexandria, Virginia, saw DOJ attorney Aaron Teitelbaum assert that Google "rigged the rules of the road," claiming the company systematically stifled competition to dominate the online ad ecosystem.
The government's case focuses on Google's alleged stranglehold on publisher ad servers, advertiser ad networks, and ad exchanges-critical tools in the digital advertising pipeline. The DOJ has urged U.S. District Judge Leonie Brinkema to hold Google accountable and consider breaking up its advertising empire by forcing the sale of Google Ad Manager, which includes the company's ad server and exchange.
Google has denied the allegations, arguing that its practices reflect innovation, not anti-competitive behavior. The company's lawyers emphasized that the DOJ relied on outdated incidents from Google's earlier years of growth. However, publishers testified during the trial that switching away from Google's services was nearly impossible due to the lack of viable alternatives. A News Corp witness stated the company estimated it would lose at least $9 million annually if it moved off Google's ad platform in 2017.
The stakes extend beyond advertising. This trial is just one of several antitrust challenges facing Google globally, as regulators and rivals accuse the company of leveraging its dominance in search, ads, and app distribution to maintain market supremacy. Analysts see the ad tech case as less threatening financially than another U.S. lawsuit targeting Google's search business, which could lead to the divestiture of its Chrome browser.
The DOJ's search monopoly case centers on Google's lucrative agreements with companies like Apple and Mozilla, which ensure Google remains the default search engine on their platforms. The DOJ contends that these billion-dollar deals disincentivize competitors from creating rival search engines. In August, Judge Amit Mehta ruled that Google's dominance in search amounts to a monopoly, enabling the company to inflate prices for search text ads and suppress competition.
Prosecutors in the ad tech trial have proposed remedies that would significantly reshape Google's operations. These include opening access to Google's advertising tools and customer base to third parties and preventing the company from favoring its own services within products like Android and YouTube. If these measures fall short, the DOJ has suggested that Google may need to divest assets like its Android operating system to restore competitive balance.
Google's antitrust troubles are not confined to the U.S. In Europe, regulators are investigating its compliance with the Digital Markets Act and have already imposed fines for prioritizing its own services, such as shopping results, in search. Additionally, Yelp has filed its own antitrust complaint against Google, alleging unfair promotion of its own local search results. Meanwhile, Epic Games has successfully argued that Google's Play Store and billing systems constitute an illegal monopoly, forcing changes to how the company manages app distribution.
Despite these legal headwinds, Google continues to defend its practices. A company spokesperson reiterated that its services benefit users and publishers by improving efficiency and access. However, the DOJ and other critics argue that this concentration of power leaves little room for meaningful competition. The ad tech case, in particular, highlights concerns over Google's ability to leverage its dominant position across multiple layers of the digital advertising market.
The broader implications of these cases remain uncertain, especially with the political landscape shifting. The Biden administration has taken a hardline stance on tech giants, while the incoming Trump administration may adopt a different regulatory approach. However, Google has faced criticism from both sides of the political spectrum. Trump has repeatedly accused the company of bias in search results, yet his administration initiated the DOJ's search monopoly lawsuit in 2020.
