Google is once again under fire from the U.S. Department of Justice (DOJ), this time over allegations of monopolistic practices in online advertising. In closing arguments on Monday, the DOJ argued that Google has established an illegal monopoly within the advertising tech market, using its dominance to control key aspects of ad placements on the open web. The case now awaits a decision from U.S. District Judge Leonie Brinkema, who is expected to issue a ruling by year-end.
This case centers on Google’s advertising technology suite, which spans services like DoubleClick for publishers, Google Ads for advertisers, and AdExchange, an auction platform for matching ads with websites. The DOJ contends that Google’s tight grip on these tools stifles competition and inflates costs for advertisers and publishers, limiting revenue for online content creators.
If Google is found guilty, the court will hold additional hearings to determine the remedies, which could include divesting parts of its ad tech business. The DOJ has suggested that Google may need to break up its integrated system, which it claims “serves Google’s own dominance” rather than benefiting consumers.
In defense, Google argues that the DOJ is focusing on a narrow slice of the online advertising market. Google’s lawyers point out that if the scope includes broader online ads, such as social media and mobile app advertising, Google’s share falls to about 10%, underscoring the increased competition the company faces from various digital platforms.
During Monday’s proceedings, Judge Brinkema questioned both sides about Google’s actual market share and its impact on competition. Historically, courts have been reluctant to label a company as a monopoly when its market share is below 70%. The DOJ, however, claims Google’s control over “open-web display advertising” constitutes 91% for publisher ad servers and 87% for advertiser ad networks.
This Virginia case is separate from an ongoing lawsuit in the District of Columbia focused on Google’s search engine practices. In that case, Google has already been deemed to hold an illegal monopoly, though remedies have yet to be determined. The DOJ has called for Google to divest its Chrome web browser as part of a broader push to curb the tech giant’s influence.
As both legal battles unfold, the decisions could reshape not only Google’s business model but also the online advertising and search landscapes as a whole.
Source: Swifteradio.com
