Google’s Domination Challenged: New Antitrust Trial Shakes Up Search Engine Monopoly | Tech News
Google Faces New Antitrust Lawsuit Over Ad Tech Monopoly
One month after a judge declared Google’s search engine as an illegal monopoly, the tech giant now confronts another antitrust lawsuit, focusing on its advertising technology. The U.S. Justice Department and a coalition of states argue that Google holds a monopoly over the technology that connects online publishers and advertisers. This control allows Google to keep up to 36% of ad revenue, according to court documents.
Google counters that the government’s case is outdated, focused on the era of desktop computers and specific web addresses. The company points out that today’s advertisers lean more towards social media and streaming services. Google’s ad network revenue has also seen a slight decline, from $31.7 billion in 2021 to $31.3 billion in 2023.
The trial, beginning in Alexandria, Virginia, was initially set to be a jury trial but has been converted into a bench trial, presided over by U.S. District Judge Leonie Brinkema. This follows a previous legal defeat, where a judge ruled Google’s search engine as a monopoly. Remedies in that case are yet to be determined, but potential sanctions could include discontinuing exclusivity deals.
Peter Cohan from Babson College notes that the Virginia case could be more damaging as it might lead to Google’s ad tech business being broken up. Witnesses for the government will include executives from major publishers, who will argue that Google’s practices harm their revenue, forcing them to increase ads or resort to paywalls.
Google disputes these claims, asserting it charges fair rates and that its integrated technology enhances efficiency and security. The company also argues that the focus on display and banner ads is outdated because consumer behavior has shifted towards mobile apps and social media.
The trial is expected to last several weeks and will be held in a courtroom that limits the use of technology, banning cellphones and restricting the number of computers allowed for lawyers.
Original Story https://www.business-standard.com/technology/tech-news/google-faces-new-antitrust-trial-after-search-engine-monopoly-verdict-124090900201_1.html
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