Google aimed to control web ad tech, US prosecutor says as trial begins

 Alphabet’s Google is facing a major antitrust trial, accused of leveraging its dominance to control the online advertising market. The trial, which began Monday in Alexandria, Virginia, marks the tech giant’s latest legal battle with the U.S. Department of Justice.

Prosecutors argue that Google has gained overwhelming control over the digital infrastructure that powers online advertising, influencing the sale of over 150,000 ads every second. The Justice Department claims Google has eliminated competition by acquiring rivals, locking in customers, and controlling the ad transaction process.

“Google isn’t on trial because of its size, but because it used that size to stifle competition,” said Julia Tarver Wood, an attorney for the Justice Department’s antitrust division, during her opening remarks.

Court Without a Jury

U.S. District Judge Leonie Brinkema is overseeing the case, which is expected to span several weeks, without a jury. Her ruling will come after the conclusion of the trial.

Google’s defense, led by attorney Karen Dunn, asserts that the Justice Department’s case is based on outdated information. Dunn argued that Google’s tools have since evolved, becoming interoperable with competitors, and highlighted the increasing competition from companies like Amazon and Comcast as ad spending moves towards apps and streaming services.

“This case feels like opening a time capsule from an era of BlackBerrys, iPods, and Blockbuster Video cards,” Dunn remarked, referencing previous claims Google successfully overcame in a search-related antitrust case.

Accusations and Testimonies

Prosecutors aim to prove that Google used its dominant technology for publishers and advertisers to keep them dependent on its tools, reducing the viability of competing platforms. On the first day, Tim Wolfe, an advertising executive at Gannett, testified that the company has relied on Google’s publisher ad server for over a decade, with few other realistic options available.

If Google is found to have violated antitrust laws, Judge Brinkema may consider forcing the company to sell off parts of its advertising business, including Google Ad Manager, a key platform for online ad transactions.

Google’s Financial Impact

According to research by Wedbush, Google’s ad tech tools brought in $20 billion, contributing to 11% of its total revenue in 2020, with Ad Manager accounting for 4.1% of that revenue.

This trial is one of several legal challenges confronting Big Tech. Google recently lost a case concerning its monopoly in online search, and separate lawsuits are targeting other tech giants like Apple, Meta, and Amazon.