Sara Fischer: Second historic Google antitrust trial kicks off

September 9, 2024

Source: AXIOS

Written by: Sara Fischer

This piece is by WWSG exclusive thought leader, Sara Fischer.

A landmark Justice Department case charging Google with violating antitrust laws in its ad-tech business is set to begin trial in a federal court in Virginia Monday.

Why it matters: Google already lost one major antitrust case this year when a federal judge ruled the tech giant illegally abused its search monopoly. A second loss could lead to sweeping changes in the firm’s core business as it fights for leadership in the AI era.

Catch up quick: The Justice Department sued Google early last year, alleging the company engaged “in a systematic campaign to seize control of the wide swath of high-tech tools used by publishers, advertisers, and brokers, to facilitate digital advertising.”

Google then used its dominance to bar competitors from the market, according to the suit.

The other side: Google contests the charges, arguing that DOJ is “doubling down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.”

On Monday, the giant said it planned in court to show “that ad buyers and sellers have many options, and when they choose Google they do so because our ad tech is simple, affordable, and effective. In short — it works.”

The big picture: Google is battling on multiple fronts.

The company is currently waiting to see what remedies the government seeks in the search case, while it continues to argue it is not a monopoly and will most likely file an appeal.
Antitrust regulators in the EU have also come after Google over similar charges.

By the numbers: Google is the largest advertising company in the world.

Advertising makes up the great majority, or 78%, of its parent Alphabet’s $307 billion annual revenues (for 2023).

What to watch: The Justice Department suit seeks to force Google sell off its Ad Manager suite — a toolkit it has built over the course of many years through various multibillion-dollar acquisitions.

Untangling the Ad Manager from the rest of its ad business would be complicated, Google argues.

What’s next: The trial is likely to last several weeks, and a ruling from the judge will take additional weeks or even months.

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