Sep 10, 2024, 4:23 PM
Sep 9, 2024, 12:00 AM

Google faces antitrust trial after monopoly ruling in October

Highlights
  • A federal judge ruled that Google violated antitrust laws and holds a monopoly in the search engine market.
  • The DOJ and eight states are suing Google for manipulating the online advertising market, claiming it controls 90% of ad displays.
  • The outcome of this trial could significantly impact the digital advertising landscape and the operations of major tech companies.
Story

Google is facing a federal lawsuit regarding its dominance in the online advertising market, following a significant court ruling that declared the company a monopolist in the search engine sector. The Department of Justice, along with attorneys general from eight states, alleges that Google has manipulated the digital advertising landscape by acquiring essential tools for ad transactions, which has led to a monopoly. Approximately 90% of online publishers reportedly utilize Google's services for ad display, raising concerns about competition in the market. The DOJ's case is built on the assertion that Google's acquisitions of ad tech firms were not adequately scrutinized by regulators, allowing the company to consolidate its power. Google, however, contends that its competitors, such as Meta and Amazon, also hold substantial market influence and that advertisers have various options available to them. The company argues that the DOJ's actions could inadvertently harm the digital advertising market by increasing advertising costs. In a recent ruling, Judge Amit Mehta confirmed that Google violated antitrust laws through exclusionary practices that established its search engine as the default on most devices in the U.S. The DOJ and 11 states have claimed that Google possesses monopoly power, with over 70% of the search advertising market share, creating barriers that hinder competition. As the trial unfolds, the DOJ is advocating for Google to divest from its Ad Manager suite, which generated significant profits in 2020. This legal battle represents a critical moment in the ongoing scrutiny of Big Tech companies and their market practices, with potential implications for the future of digital advertising.

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