Google’s US Trial Over Ad Dominance Approaches Closing Arguments

November 25, 2024 04:17 AM PST | By Team Kalkine Media

Google’s US Trial Over Ad Dominance Approaches Closing Arguments — Image source: Shutterstock

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The U.S. Department of Justice will present its closing arguments on Monday in the ongoing antitrust case against Google (NASDAQ:GOOGL) over alleged illegal practices in online advertising technology. The trial, which concluded its 15-day proceedings in September, centers on Google's dominance in the advertising sector, particularly regarding publisher ad servers, advertiser ad networks, and ad exchanges that connect buyers and sellers. Prosecutors argue that Google has monopolized these markets, stifling competition.

Google has countered these claims by asserting that the case relies on outdated practices, suggesting that the company was merely refining its services during the time in question. The tech giant contends that U.S. antitrust laws are being applied in a way that unfairly pressures it to accommodate rival services. At trial, publishers testified that they were essentially locked into Google’s advertising ecosystem, with no viable alternatives despite certain features they found unfavorable. For example, News Corp claimed that switching away from Google’s ad services would have resulted in a significant loss of ad revenue.

If U.S. District Judge Leonie Brinkema rules in favor of the Department of Justice, she may decide to enforce a remedy that requires Google to divest its Google Ad Manager platform, which encompasses the company's publisher ad server and ad exchange. Google had previously proposed selling its ad exchange to resolve an antitrust probe in the European Union, but the offer was rejected by European publishers, who found it inadequate.

While analysts view the online advertising case as less financially risky compared to Google’s ongoing legal battle concerning its monopoly in online search, the outcome could still have significant implications for the company’s business operations in the advertising space.

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