Google’s digital ad dominance under scrutiny in US antitrust trial: Reports

The case is part of a broader effort by the Biden administration to rein in big tech companies through antitrust rules.

Alphabet subsidiary Google will face its second antitrust trial next week, media reports say, as the U.S. Department of Justice questions the company’s ad monetization system.

The case is part of a broader push by the Biden administration to rein in big tech through antitrust laws. The upcoming trial in Alexandria, Virginia, will shift the focus from Google’s widely used search engine to a less visible advertising technology that connects website publishers with advertisers. The technology plays a significant role in Google’s advertising revenue, which accounted for more than 75% of its $307.4 billion in revenue last year.

“Google is by far the largest ad seller in the world. They influence every part of the industry, if not directly, then indirectly. Everyone has some interest in Google,” said Brian Wieser, an advertising consultant and financial analyst.

The Justice Department and a coalition of states will argue that Google violated U.S. antitrust laws in its online advertising activities. The outcome for those sites could prompt them to ask U.S. District Judge Leonie Brinkema to consider breaking up the company.

Antitrust regulators say Google has monopolized the technology used in online advertising by integrating its tools for publishers and advertisers, giving it a “privileged intermediary position.”

Google has rejected the accusations, saying it has no obligation to share its technological advantages with competitors and its products are compatible with those of other companies.

The Justice Department alleges that Google has a 91% share of the market for ad servers used by publishers to sell advertising space, more than 85% of the market for ad networks used by advertisers, and more than 50% of the market for ad exchanges.

Google says its market share is 30% or less when social media, streaming TV and apps are included, arguing that the Justice Department’s focus on online ads ignores broader competition. Competitors like The Trade Desk and Comcast, as well as PubMatic, may testify. The case will also examine the impact of ad technology on news organizations, noting significant newspaper closures since 2005.

“Journalism is under threat in large part because of consolidation in the advertising market,” Jonathan Kanter, head of the Justice Department’s antitrust division, said at an event in June hosted by the Open Markets Institute, an antitrust advocacy group.

Current or former News Corp, Daily Mail and Gannett executives may testify against Google. Google says a breakup would hamper innovation and increase costs. Testimony from more than two dozen current or former employees, including YouTube CEO Neal Mohan, will be key.