Google’s ad tech practices under antitrust scrutiny

Google is facing a new antitrust lawsuit over its advertising technology, with the trial starting Monday in Alexandria, Virginia.

The US Department of Justice and several states accuse the tech giant of monopolising the ad tech sector, allowing it to collect up to 36 cents for every dollar transacted between advertisers and online publishers. The lawsuit focuses on Google’s control of both the buy and sell sides of ad transactions.

Despite Google Networks, which includes AdSense and Google Ad Manager, seeing a revenue decline from $31.7 billion in 2021 to $31.3 billion in 2023, the government argues that the company’s dominance in digital ads has harmed competitors, particularly publishers.

Witnesses expected in the trial include executives from major media companies like The New York Times and Gannett, who claim Google’s fees have squeezed publishers, forcing them to increase ads, implement paywalls, or shut down.

This trial follows a separate ruling declaring Google’s search engine an illegal monopoly. While remedies for that case are still pending, experts warn that this ad tech lawsuit could have severe financial implications, with potential divestitures being discussed.

The case is being overseen by Judge Leonie Brinkema, known for handling complex technical cases, and is expected to last several weeks.

Attribution: The Associated Press (AP)

Subediting: M. S. Salama