DOJ and Google clash in final round of Ad tech antitrust trial

The U.S. Justice Department and Google are set to present their closing arguments today in an ongoing antitrust case concerning Google's dominance in the online advertising market. The trial, which has been taking place since September in a Virginia federal court, is poised to determine the future of Google's advertising operations, with potential long-term consequences for the tech industry.

Allegations of Anti-competitive practices

The Justice Department accuses the company of leveraging its position in ad exchanges and publisher ad servers to unfairly dominate the programmatic advertising space. According to the U.S. government, The company's monopolistic practices have led to inflated costs for advertisers while cutting revenue for struggling publishers. Julia Tarver-Wood, one of the Justice Department lawyers, commented, “This technology may be modern, but the practices are as old as monopolies themselves.” The DOJ also claims that the company's acquisitions of companies like DoubleClick and AdMeld were part of a deliberate strategy to suppress competition and maintain its hold on the market.

Google’s defence

Google’s legal team, however, argues that the company’s market position results from its efficiency in providing better advertising tools, ultimately benefiting small and medium-sized businesses (SMEs) and promoting innovation. The company will defend its acquisitions as legitimate, asserting that its practices have stimulated competition, not diminished it. “The plaintiff’s case is a little like a time capsule,” said Google’s lawyer Karen Dunn during the trial, suggesting that the government’s claims are outdated and do not reflect the current advertising landscape.

The company's defence also involves challenging the DOJ’s market definitions. The company intends to argue that its services, such as the display ads it runs across various platforms, do not dominate the ad tech space in a way that stifles competition. Instead, the company asserts that there is 'intense' competition from rivals, including Meta and Amazon, especially in emerging advertising sectors.

Implications for big tech and the digital economy

The case has drawn attention not only because of its legal implications but also due to its potential to reshape the digital advertising industry. If the court rules against the company, it could be forced to divest part of its ad tech business, significantly altering its operations. “If Google were to lose, the winners would be rival tech giants like Microsoft, Meta, or Amazon, whose market share in online advertising is ascendant as Google's share is falling,” added Tarver-Wood, emphasising how the changing dynamics in digital advertising could benefit competitors.

The broader legal battle: Google’s search monopoly

In addition to the ad tech trial, Google is also embroiled in a separate case concerning its dominance in the search market. Last week, a federal court ruled that the company holds a monopoly in search, prompting the DOJ to propose measures such as divesting its Chrome browser and imposing restrictions on how it handles search data. These cases, taken together, represent a major challenge to the company’s operations in the U.S. market.

What’s next for Google?

With both trials ongoing, the outcome of these cases could have significant repercussions for the company and the broader tech industry. Judge Leonie Brinkema is expected to deliver her opinion in the coming weeks, and the result of this case will likely set a precedent for how big tech firms are regulated moving forward. However, many legal observers believe that this case will not end with the trial’s conclusion and that it will continue through the appeals process, potentially extending to the U.S. Supreme Court.