Internet giant Google faces yet another legal wrangle as the U.S. Justice Department mounts an aggressive endeavor aimed at dismantling the company’s towering digital advertising business. The trial, set to begin on Monday in a federal court in Alexandria, Virginia, marks the latest chapter in Google’s ongoing antitrust saga.
The focus of the trial is on accusations of illicit monopoly practices in Google’s digital advertising technology, which, as per U.S. District Judge Leonie Brinkema, have stifled competition to the detriment of online publishers reliant on the system for income.
Over the coming fortnight, both Google and the Justice Department will present their arguments and evidence in a remedy trial aimed at restoring fair market conditions. While no timeline has been set for a final decision, it is unlikely to be reached before the close of the year due to anticipated legal deliberations extending into November.
Regardless of the trial’s outcome, Google has signaled its intention to appeal the earlier decision that deemed its ad network a monopoly. This appeal, however, cannot be filed until a remedy has been determined.
This development follows earlier reports that the case, filed in 2023 during President Joe Biden’s administration, could potentially destabilize the intricate network that Google has built over the past 17 years to bolster its predominant digital advertising business. This business not only accounts for the majority of the $305 billion in revenue generated for corporate parent Alphabet Inc., but it also provides the vital lifeblood for thousands of websites.
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If the Justice Department prevails, the court may require Google to divest parts of its ad technology. This proposed measure has been cautioned by Google’s legal team to potentially invite disruption and damage to consumers and the broader internet ecosystem. Conversely, the Justice Department maintains that this drastic measure would be the most effective and expedient way to dismantle a monopoly that has been smothering competition and innovation for years.
The trial bears a striking resemblance to a separate legal battle Google has recently navigated, where another federal judge labeled its dominant search engine an illegal monopoly, prompting remedy hearings to determine how to rectify the misconduct.
As they did in the search case, Google’s lawyers have argued that advancements in AI technology used by ad network rivals such as Meta Platforms are reshaping the market dynamics, thus making the Justice Department’s proposed measures unnecessary.
