Regulators have successfully argued Google is too powerful in search – now they are coming for its ad tech.
The US government is taking aim at the engine of Google’s immense wealth – its extremely lucrative ad tech business.
A trial beginning on Monday will hear the Department of Justice’s case that the search engine’s parent company Alphabet illegally operates a monopoly in the market.
The company earned more than $200 billion (£152bn) last year through the placing and selling of ads seen by internet users.
Alphabet has argued its success is due to the « effectiveness » of its services – but prosecutors say it has used its market dominance to stifle rivals.
“It is a really important industry that grabs billions of consumer dollars every year,” said Laura Phillips-Sawyer, a professor at the University of Georgia School of Law.
“I think all consumers have an interest in this litigation. »
It is the second major antitrust case the tech giant has faced in the US.
In August a judge ruled its dominance of search was illegal, with the penalties Google and Alphabet will face as a result of that decision so far unclear.Anticompetition claims
According to the lawsuit filed by the Department of Justice (DoJ) and a coalition of states in 2023, Google dominates the digital ad marketplace and has leveraged its market power to stifle innovation and competition.
