Google is bracing for another significant legal challenge as it faces allegations of monopolistic control in the digital advertising market, with its $20 billion ad tech business now at stake. This legal battle marks the latest chapter in an international antitrust campaign aimed at curbing the tech giant’s long-standing dominance, per Financial Times.
Fresh off its legal defeat regarding online search practices, Google’s parent company, Alphabet, will face the U.S. Department of Justice (DoJ) in court next week. The lawsuit, which dates back to January 2023, accuses Google of using “anti-competitive, exclusionary, and unlawful means” to solidify its position as the dominant intermediary in the ad tech ecosystem. This system includes the automated marketplace that powers the buying, selling, and placement of digital ads, including video and picture advertisements online.
The Financial Times reports that the case will shed light on the potential conflicts of interest arising from Google’s ownership of various ad tech services, which span all sides of the market. Google controls key technologies used by web publishers, like newspapers, to sell ad space. It also owns the largest exchange where businesses bid for these spaces and the software advertisers use to access the ad market.
This new antitrust case, set to begin Monday in Alexandria, Virginia, comes at a critical time for Alphabet. In the last nine months, the tech giant has lost two major antitrust lawsuits, amplifying fears of court-ordered changes that could reshape the nearly $2 trillion company. One of these cases, according to Financial Times, led a judge to label Google a “monopolist” for paying billions to maintain its dominance as the default search engine on platforms like Apple. Another case saw a San Francisco jury ruling that Google blocked rivals from its Android Play Store, generating billions in excessive fees.
Related: Google Heads to Court in Major DOJ Antitrust Battle Over Ad Practices
These legal challenges pose some of the most significant threats to Google in its 26-year history, particularly as artificial intelligence and AI-driven chatbots threaten to alter how users search for information. Sundar Pichai, Alphabet’s CEO, must now navigate these existential legal and market threats, working to protect the integrity of Google’s sprawling business.
“Like all empires, time remains undefeated, and the barbarians are at Google’s gate,” said Mark Shmulik, a Bernstein analyst, quoted by Financial Times. Shmulik predicted that Google may struggle to emerge from this “three-front legal battle” without significant damage. However, he also noted that investors have largely dismissed the regulatory challenges, viewing them as “noise in a noisy world.”
According to the Financial Times, the judge’s ruling on remedies for a separate lawsuit involving Google’s Play Store is expected in the coming weeks. Meanwhile, the government’s antitrust case related to Google’s search dominance will likely take longer, with a decision anticipated by August 2025. Potential remedies for these cases could range from banning incentive payments to partners, forcing Google to share user data with competitors, or even breaking the company into smaller units.
Barak Richman, a law professor at George Washington University, described the DoJ’s case against Google’s ad tech business as “fascinating” and potentially more consequential than the ongoing search-related lawsuit. “It illustrates the policy tension of what happens when a company creates a new market, which is presumptively good, and then hardwires the market for self-advancement, which is presumptively bad,” he explained to the Financial Times.
With multiple legal fronts now threatening to reshape Alphabet’s future, the outcomes of these cases could significantly impact not only the company but also the broader digital advertising and tech landscape.
Source: Financial Times
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