After successfully navigating the U.S. Justice Department’s attack on its monopoly in online search, Google is now facing another attempt to dismantle its internet empire in a trial focused on its digital advertising business. The trial, which began Monday in an Alexandria, Virginia, federal court, is a “remedy” trial. U.S. District Judge Leonie Brinkema has already declared parts of Google’s advertising technology to be an illegal monopoly and found that the company has engaged in behavior that stifles competition and harms online publishers who depend on the system for revenue. The Justice Department and Google will spend the next two weeks presenting evidence, with Judge Brinkema expected to issue a ruling on how to restore fair market conditions.
Julia Tarver Wood, an attorney for the Justice Department’s antitrust division, argued in her opening statement that Google is manipulating the market in a way that is “antithetical to free market competition.” An attorney for Google, Karen Dunn, countered that the government’s proposed remedy is “reckless and radical” and that the government is attempting to remove Google entirely from the competition. No matter how the judge rules, Google has stated it will appeal the earlier decision labeling the ad network as a monopoly, but appeals cannot be filed until a remedy is determined.
A Battle Over How to Restore Competition
The case, which was filed in 2023, threatens the complex network that Google has spent the last 17 years building. If the Justice Department gets its way, Judge Brinkema will order Google to sell parts of its ad technology, a proposal the company’s lawyers warn would “invite disruption and damage” to consumers and the internet’s ecosystem. The Justice Department, however, contends that a breakup would be the most effective and quickest way to undercut a monopoly that has been stifling competition and innovation for years. Google, for its part, believes it has already made enough changes to its “Ad Manager” system to resolve the issues the court has flagged.
This legal battle over Google’s advertising technology mirrors the company’s recent search monopoly trial. In that case, the Justice Department also proposed a severe crackdown that would have required Google to sell its popular Chrome browser. However, U.S. District Judge Amit Mehta decided a less dramatic shake-up was needed, partly due to a search market being reshaped by artificial intelligence technology. Google’s lawyers are making a similar argument in this trial, asserting that new AI technology from rivals like Meta Platforms is changing the market and overriding the need for the Justice Department’s “radical” proposals.
Lessons from the Search Case
The outcome of the search monopoly case may sway things in the advertising technology proceedings, as Judge Brinkema has asked both Google and the Justice Department to address Mehta’s decision during the upcoming trial. The search case, which many saw as a slap on the wrist for Google, helped propel its corporate parent, Alphabet Inc., to new market highs. The company’s market value reached $3 trillion after a 20% gain since Judge Mehta’s decision, an increase of more than $1 trillion since Judge Brinkema branded Google’s ad technology as a monopoly in April.
What The Author Thinks
This trial represents a new and significant front in the ongoing battle against big tech dominance. While the search case provided a playbook for Google to navigate a less-punitive outcome, the ad-tech trial is different due to its direct impact on online publishers’ revenue. The Justice Department’s push for a breakup is a bold statement, suggesting that simply regulating a monopoly is no longer enough. The outcome could signal whether the government is truly willing to dismantle these giants or if it will continue to favor less dramatic solutions that leave their power largely intact. The verdict will set a crucial precedent for the future of antitrust enforcement and could reshape the digital advertising ecosystem for years to come.
Featured image credit: Mitchell Luo via Unsplash
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