Justice Department Initiates Second Antitrust Trial Against Google for Online Advertising Monopoly

Justice Department Launches Second Antitrust Trial Against Google

On Monday, the Justice Department presented its case in a federal court, asserting that Google has established a monopoly in the highly lucrative arena of online advertising technology. This trial marks the second federal antitrust challenge against the tech giant, reflecting growing concerns over the dominance of major players in the tech industry.

Julia Tarver Wood, the lead attorney for the government, outlined in her opening statements how Google leveraged its acquisition of the advertising software firm DoubleClick in 2008 to cement its control over the technology that facilitates the auctioning of ads on websites as users browse. Currently, Google commands an impressive 87 percent market share in this sector, enabling the company to impose higher prices and capture a larger share of revenue from each transaction. This, according to Wood, has detrimental effects on news publishers and other website owners.

Wood emphasized that Google has utilized its size and substantial influence to stifle competition, manipulating industry standards to enhance its profitability. In her remarks at the U.S. District Court for the Eastern District of Virginia, she stated:

“Google is not here because they are big. 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 initiated last year. The lawsuit accuses Google of exploiting its dominance in ad technology and violating antitrust regulations. This is the second federal antitrust trial Google has faced within a year; earlier in August, a federal judge ruled that the company had illegally maintained a monopoly over online search services. The judge is now deliberating on potential remedies, which may include requiring Google to divest parts of its business.

The allegations against Google are part of a broader effort by regulators to curb the immense power wielded by Big Tech companies, which play a pivotal role in shaping commerce, information dissemination, and communication on the internet. In addition to Google, the Justice Department has also filed a lawsuit against Apple, accusing it of creating barriers that make it difficult for consumers to exit its tightly integrated ecosystem of devices and software. Similarly, the Federal Trade Commission has taken action against Amazon for allegedly squeezing small businesses and has also sued Meta, claiming the company stifled competition by acquiring rivals like Instagram and WhatsApp.