The U.S. Department of Justice (DOJ) has initiated a significant antitrust trial against Google, accusing the tech giant of illegally monopolizing the online advertising technology market. The trial, launched with 17 state partners, focuses on Google’s $31 billion ad-tech business, which connects advertisers with website publishers. The government claims that Google’s dominance harms publishers and advertisers by driving up costs, limiting competition, and pushing the market in its favour.

Key Trial Points:

  1. Monopoly Allegations: The DOJ accuses Google of monopolizing three core areas of online advertising: its publisher ad server, ad exchange AdX, and its advertiser ad network. The government claims that Google controls up to 91% of the ad-tech market, creating unfair advantages for itself.
  2. Anticompetitive Behavior: DOJ attorneys argue that Google used mergers like its acquisitions of DoubleClick and AdMeld to choke competition, forcing businesses into using its ad products and engaging in self-dealing practices. As a result, prices for advertisers have risen, while revenue for publishers has diminished.
  3. Industry Impact: Witnesses, including executives from Gannett, testified about the high fees publishers pay to Google. Of the $15 million in annual fees paid by Gannett, $10 million goes to Google. Publishers rely heavily on Google’s tools, facing no competitive alternatives.
  4. Google’s Defense: Google contends that the ad-tech market remains competitive, citing rivals like Meta, Amazon, Microsoft, and TikTok. Its attorneys argue that Google’s market share has been steadily declining since 2013 and that the DOJ is focusing too narrowly on website ads while ignoring the broader ad landscape.
  5. Potential Breakup: The DOJ is pushing for Google to break up its ad-tech business. If successful, this could reshape the digital advertising landscape, creating new opportunities for smaller competitors and reducing Google’s hold on the market.
  6. Broader Implications: The trial is seen as a pivotal moment in the U.S. government’s effort to enforce antitrust laws in Big Tech. A ruling against Google could trigger further regulatory scrutiny across the tech sector and redefine the competitive landscape in digital advertising.

The trial is expected to last several weeks, with potential witness testimony from executives of major media and tech companies. Should the court rule in favour of the DOJ, Google could face a breakup of its ad-tech business, potentially reshaping the global advertising market.