San Francisco, Monday, September 9, 2024- Google’s ad tech business is under intense scrutiny as a major trial gets underway today.
The U.S. Department of Justice (DoJ) is challenging Alphabet, Google’s parent company, on allegations that it operates an illegal monopoly in the digital advertising market.
The case, set to be heard by U.S. District Judge Leonie Brinkema, accuses Alphabet of using its market dominance to suppress competition and innovation.
The company, which generated over $200 billion from advertising last year, argues that its success stems from the superior effectiveness of its services.
This is Google’s second major antitrust challenge in the U.S. Earlier in August, Judge Amit Mehta ruled that Google’s dominance in the search was unlawful, though the consequences for the company remain uncertain.
The latest lawsuit, filed in 2023 by the DoJ and several states, claims Google’s control of the digital ad space stifles competition.
Google counters that it is merely one of many players in a rapidly growing market, pointing to the success of rivals like Apple, Amazon, and TikTok.
The trial follows a landmark decision last month where Judge Mehta found that Google illegally suppressed competition in its search business. Google’s defense in the ad tech case mirrors its previous stance, asserting that its ad technologies are chosen by users for their effectiveness.
The scrutiny extends beyond the U.S. as well. On Friday, the UK Competition and Markets Authority expressed concerns over Google’s practices in the ad tech sector, suggesting that its dominance could be harming UK publishers and advertisers.
A Google spokesperson criticized the UK’s findings as based on a flawed understanding of the industry.
