US-Google Antitrust Trial on Ad Tech Reaches Closing Arguments

AFP/APP

Alexandria: Closing arguments are set to commence on Monday in a federal court as Google and the US government face off in a high-stakes antitrust trial over the tech giant’s dominance in online advertising.

The case, held in Virginia’s federal court, is Google’s second antitrust battle with the US government, which is seeking to curb the influence of major tech companies.

Key Allegations

The Justice Department argues that Google unfairly dominates the auction-style ad technology market, which determines the online ads seen by users. Prosecutors claim Google’s practices inflate costs for advertisers while reducing revenues for publishers, including struggling news outlets.

“This technology may be modern, but the practices are as old as monopolies themselves,” Justice Department lawyer Julia Tarver Wood stated during the trial.

The government alleges Google used its financial power to acquire competitors and corner the ad tech market, leaving advertisers and publishers with little choice but to rely on its services. As a remedy, the Justice Department seeks to compel Google to divest parts of its advertising business.

Google’s Defense

Google has dismissed the claims as misguided, arguing that the government’s case relies on outdated perspectives of the ad tech market.

“The plaintiff’s case is a little like a time capsule,” said Google’s lawyer Karen Dunn, who warned that a ruling against Google would primarily benefit rival tech giants like Microsoft, Meta, and Amazon, whose influence in online advertising is growing.

Google contends that its share in the broader ad market, including search results and social media, does not constitute dominance and points to previous antitrust rulings in its defense.

Trial Proceedings and Next Steps

Both sides will have 90 minutes to present their final arguments, summarizing weeks of testimony from the trial held in September and October. Judge Leonie Brinkema has indicated she aims to deliver her judgment swiftly, possibly by next month.

If Google is found to be at fault, the trial will enter a new phase to determine how the company must comply with the ruling. However, the case is likely to face appeals that could extend the process to the US Supreme Court.

Wider Implications

The outcome of this trial adds to the mounting pressure on Google, which is already facing a separate antitrust case regarding its search engine monopoly. In that case, the Justice Department has proposed divestment of the Chrome browser as a solution.

The trial’s resolution, whether in favor of Google or the government, is expected to have far-reaching consequences for the ad tech industry and the broader debate over regulating big tech.