Justice Department Challenges Google’s Dominance in Online Advertising
The Justice Department has initiated a significant federal antitrust trial against Google, asserting that the tech giant has established a monopoly in the lucrative online advertising sector. This trial marks the second major legal challenge against Google in recent months, as scrutiny of Big Tech intensifies across the industry.
In her opening statements, Julia Tarver Wood, the lead trial attorney for the government, outlined how Google’s acquisition of the advertising software company DoubleClick in 2008 has been pivotal in cementing its dominance in the technology that facilitates the auctioning of ads on websites. Currently, Google commands a staggering 87 percent market share in this crucial ad-selling technology, which enables the company to charge inflated prices and capture a larger share of each transaction. This dominance, according to Wood, has detrimental effects on news publishers and other website owners.
Wood argued that Google has leveraged its extensive size and influence to systematically exclude competitors from the market, claiming that the company has manipulated the rules to enhance its profits. “Google is not here because they are big,” she stated. “They are here because they used that size to crush competition.”
This trial is a continuation of the case titled U.S. et al v. Google, which the Justice Department filed against the company last year. The lawsuit accuses Google of abusing its control over ad technology and violating antitrust laws. This marks the second such trial for the Silicon Valley titan within a year, following a ruling in August where a federal judge concluded that Google had unlawfully maintained a monopoly over online search. The judge is now deliberating on potential remedies, which may include divesting segments of Google’s business.
The ongoing legal battles against Google are indicative of a broader movement by regulators aiming to curtail the immense power held by Big Tech firms, which play a pivotal role in shaping commerce, information dissemination, and online communication. In addition to Google, the Justice Department has also brought lawsuits against Apple, alleging that the company has created barriers for consumers wanting to exit its tightly integrated ecosystem of devices and software. Furthermore, the Federal Trade Commission has initiated legal action against Amazon for its treatment of small businesses and against Meta for allegedly stifling competition through its acquisitions of Instagram and WhatsApp.
