On Monday, the Justice Department initiated its antitrust proceedings against Google in Alexandria, Virginia, alleging that the tech giant has engaged in monopolistic practices within the online advertising sector. Prosecutor Julia Tarven Wood contended that Google has exerted control over ad technology, processing more than 150,000 ad transactions per second.
Wood argued that Google had utilised classic monopoly tactics, including acquiring competitors, binding customers to its products, and monopolising online ad transactions. ‘Google is not being scrutinised solely for its size but for using its market position to stifle competition’, she asserted.
U.S. District Judge Leonie Brinkema will adjudicate the case bench trial-style, without a jury, and will render a decision upon the trial’s conclusion. Google’s lead counsel, Karen Dunn, challenged the relevance of the case, suggesting that it relies on outdated information and that Google’s tools now interoperate with competitors’ technologies. She further noted that the company faces competition from entities like Amazon and Comcast.
The prosecution aims to demonstrate that Google leveraged its technological dominance to obstruct the use of competing tools and undermine rival bids. Tim Wolfe of Gannet testified that the company has depended on Google’s publisher ad server for approximately 13 years, indicating a lack of viable alternatives.
Should the court find Google in violation of antitrust laws, Judge Brinkema may consider ordering the divestiture of Google Ad Manager, which encompasses both the publisher ad server and ad exchange. Alphabet’s shares declined by 1.7% following the developments.
This case is part of broader investigations into alleged monopolistic practices by major tech firms, with recent rulings against Google’s search dominance and ongoing litigation against Apple, Meta Platforms and Amazon.