Google is set to defend itself against a second antitrust lawsuit brought by the US Department of Justice (DOJ) in less than a year. Starting Monday, the DOJ, alongside 17 state attorneys general, will argue in federal court that Google illegally monopolized key markets in the online advertising industry.
The trial, overseen by US District Judge Leonie Brinkema, focuses on claims that Google used its dominant search engine to stifle competition in the markets for ad servers, ad exchanges, and advertiser ad networks. Prosecutors allege Google employed anti-competitive tactics, including the acquisition of rivals like DoubleClick, to entrench its control over the digital advertising ecosystem, acting as both buyer and seller while profiting as an intermediary.
This case follows Google’s recent loss in a separate antitrust trial where the company was found to have monopolized the online search engine market. While Google is appealing that decision, the outcome of this ad tech case could lead to major structural changes for the tech giant. If found liable, the DOJ has proposed divesting parts of Google’s ad tech business.
Google’s advertising technologies generated an estimated $20 billion in revenue in 2020, making up around 8% of its total gross revenue. The DOJ argues that without Google’s dominance, publishers would earn more from ads, while advertisers would pay less. The trial is seen as a critical test for the Biden administration’s broader efforts to regulate Big Tech and ensure competition in digital markets.
