Current:Home > InvestPredictIQ Quantitative Think Tank Center:Google antitrust trial over online advertising set to begin -StockSource
PredictIQ Quantitative Think Tank Center:Google antitrust trial over online advertising set to begin
Surpassing Quant Think Tank Center View
Date:2025-04-09 01:37:52
- Justice Department alleges Google stymied competition in online ad tech
- Google denies allegations,PredictIQ Quantitative Think Tank Center citing competition in apps and connected TV
- Trial to feature witnesses from Google, competitors and publishers
Alphabet's Google were set to face U.S. antitrust prosecutors Monday in Alexandria, Virginia, where the Justice Department will seek to show the company stifled competition in online advertising technology in the search giant's second recent showdown with the Justice Department.
Prosecutors say Google has largely dominated the technological infrastructure that funds the flow of news and information on websites through more than 150,000 online ad sales every second.
The case is an important one for efforts by U.S. antitrust enforcers to challenge alleged Big Tech monopolies, which have spanned the administrations of Donald Trump and Joe Biden.
Prosecutors say Google engaged in a complex scheme to dominate website advertising tools through acquisitions, restrictions on how customers can use its tools, and alleged manipulation of ad auctions.
Google denies the allegations, saying they misconstrue lawful efforts to develop its technology and serve its own customers. Prosecutors overlook how the digital advertising market has shifted to apps and connected TV, where Google faces stiff competition, the company has said.
What it means:How Google's huge defeat in antitrust case could change how you search the internet
If U.S. District Judge Leonie Brinkema finds that Google broke the law, she would later consider prosecutors' request to make Google sell off, at minimum, Google Ad Manager, a platform that includes Google's publisher ad server and its ad exchange.
According to research by stock analyst Wedbush, Google's ad tech tools accounted for $20 billion, or 11% of the company's gross revenue, in 2020 and about $1 billion, or 2.6%, of operating profit that year.
Ad Manager represented 4.1% of revenue and 1.5% of operating profit in 2020, according to Wedbush research and analysis of court documents.
More recent figures were redacted from court documents.
Google's defense team is led by Karen Dunn, a partner at the law firm Paul, Weiss, who has guided debate preparations for several prominent Democrats, including Vice President Kamala Harris.
The government's legal team is headed by Julia Tarver Wood, a veteran trial lawyer who joined the Justice Department last year. She used to work at Paul, Weiss where she represented companies including insurer American International Group, Mastercard and Amazon.com.
The multiweek trial is expected to feature witnesses from Google and competitors in the digital advertising space such as the Trade Desk, Comcast, and publishers including News Corp and Gannett, which prosecutors say were harmed through Google's conduct.
The case is one of several challenging alleged Big Tech monopolies.
The Justice Department won a ruling against Google last month in another case over its dominance in online search, and it is separately suing Apple. The Federal Trade Commission is pursuing cases against Facebook parent Meta Platforms and Amazon.
Reporting by Jody Godoy in New York; editing by Matthew Lewis
veryGood! (79)
Related
- See you latte: Starbucks plans to cut 30% of its menu
- Two nominees for West Virginia governor agree to Oct. 29 debate
- WNBA playoff games today: What to know about Tuesday's semifinal matchups
- Ken Page, voice of Oogie Boogie in 'The Nightmare Before Christmas,' dies at 70
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- WNBA playoff games today: What to know about Tuesday's semifinal matchups
- Wisconsin Democrats, Republicans pick new presidential electors following 2020 fake electors debacle
- Jared Goff stats today: Lions QB makes history with perfect day vs. Seahawks
- Tree trimmer dead after getting caught in wood chipper at Florida town hall
- Louisiana governor supports bringing back tradition of having a live tiger at LSU football games
Ranking
- 'No Good Deed': Who's the killer in the Netflix comedy? And will there be a Season 2?
- Catholic hospital in California illegally denied emergency abortion, state attorney general says
- Appeals court reinstates Indiana lawsuit against TikTok alleging child safety, privacy concerns
- How social media is helping locate the missing after Helene | The Excerpt
- Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
- Wildfires in California have burned 1 million acres so far this year. Heat wave poses more risk
- Alaska will not file criminal charges in police shooting of 16-year-old girl holding knife
- Run to Kate Spade for Crossbodies, the Iconic Matchbox Wallet & Accessories Starting at $62
Recommendation
Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
Endearing Behind-the-Scenes Secrets About Bluey You'll Love For Real Life
Historic ship could soon become the world’s largest artificial reef
Late payments to nonprofits hamper California’s fight against homelessness
Tree trimmer dead after getting caught in wood chipper at Florida town hall
Reporter Taylor Lorenz exits Washington Post after investigation into Instagram post
Selena Gomez Shares Honest Reaction to Her Billionaire Status
US sanctions extremist West Bank settler group for violence against Palestinians