Google Faces Antitrust Showdown over Online Advertising Dominance

Alphabet's Google is facing a major antitrust trial in Virginia, accused of using monopolistic tactics to dominate online advertising. The Justice Department argues that Google has crushed competition through acquisitions and control over ad transactions. Google's defense claims their tools are compatible with competitors and that the lawsuit is outdated.

Alphabet's Google sought to dominate all sides of online advertising technology by controlling competitors and customers, a Justice Department prosecutor said as trial began in the tech titan's latest antitrust showdown in Alexandria, Virginia on Monday.

Prosecutors assert that Google has largely dominated the technological infrastructure that funds the flow of news and information on websites through more than 150,000 online ad sales every second. According to Julia Tarver Wood, an attorney with the Justice Department's antitrust division, Google utilized classic monopoly-building tactics, eliminating competitors through acquisitions, locking customers into using its products, and controlling online ad market transactions.

"Google is not here because they are big, they are here because they used that size to crush competition," Wood stated. U.S. District Judge Leonie Brinkema is presiding over the case without a jury and will issue a ruling post-trial.

Google's lead attorney, Karen Dunn, countered that the Justice Department and coalition of states based their case on outdated information. Dunn argued that Google's tools are now interoperable with rivals, including Amazon and Comcast, as digital ad spending shifts to apps and streaming video. She compared the allegations to claims that Google defeated in the recent search monopoly case.

At trial, prosecutors aim to demonstrate that Google leveraged dominant positions in technology for publishers and advertisers to deter the use of competitors' tools. Tim Wolfe, an advertising executive at Gannett, testified on Monday regarding the absence of realistic alternatives to Google's publisher ad server.

If Judge Brinkema rules that Google breached the law, she will consider prosecutors' request for Google to sell off Google Ad Manager. Alphabet's shares fell 1.7% in the afternoon.

Research indicates Google's ad tech tools contributed significantly to the company's revenue and profit in 2020, with more recent figures redacted.

The case is among several actions challenging Big Tech monopolies. The Justice Department recently won a ruling against Google over its dominance in online search and is also suing Apple. Additionally, the U.S. Federal Trade Commission is pursuing cases against Meta Platforms and Amazon.

(With inputs from agencies.)