In 2023, Google’s advertising technology accounted for two-thirds of parent company Alphabet’s $307.4 billion revenue|Anthony Quintano|CC BY 2.0
Google is facing its second antitrust trial in the US in less than a year in a new case over its web advertising technology. The lawsuit comes a month after a federal judge decreed Google’s search engine an illegal monopoly.
In the latest trial, which threatens to break up the company, the Department of Justice alleges the tech giant maintains a monopoly over ad software on the buyer and seller side.
In 2023, Google’s advertising technology accounted for two-thirds of parent company Alphabet’s $307.4 billion revenue.
The trial began in a Virginia court on Monday and is expected to last several weeks. It has the potential to reshape the digital advertising landscape.
The DOJ and 17 states argue that Google controls too much of the online ad tech market, giving it the power to collect hefty fees for brokering sales between advertisers and publishers.
The services in question include AdSense and Google Ad Manager.
One of the suggestions by the government is to break up the advertising division from the company so other competitors have a fair chance.
Google’s legal team argues that any such move would not benefit small players but big giants like Amazon, Microsoft and TikTok. The company also claims that the government’s case is outdated and fails to account for the rise of advertising markets on social media, mobile apps and streaming platforms.
If Google loses the case, it could face a significant restructuring of its advertising operations, which could have far-reaching consequences for the company’s future and the tech industry as a whole.