Overview
Following a recent ruling that deemed its search engine an illegal monopoly, Google is now confronting another antitrust lawsuit regarding its advertising technology. The US Department of Justice (DOJ) and several states claim Google has established a monopoly in the online ad market by controlling both sides of the transaction.
Government’s Position
The DOJ argues that Google’s dominance allows it to pocket up to 36 cents from every advertising dollar, asserting it has monopolized the ad exchange market.
Google’s Response
Google contends that the lawsuit is based on outdated practices from a time dominated by desktop use, emphasizing that advertisers now prefer platforms like TikTok. They warn that any punitive measures could inadvertently strengthen other major tech companies.
Financial Context
Google’s advertising revenue has decreased, falling from $31.7 billion in 2021 to $31.3 billion in 2023, challenging claims of an unchallenged monopoly.
Current Legal Proceedings
The case is being heard by US District Judge Leonie Brinkema, who has previously ruled on similar high-profile cases. Potential outcomes could include significant structural changes to Google’s ad business.
The trial is set to last several weeks.
