The US Department of Justice will contest Alphabet’s Google’s method of monetizing advertising through a system that damages news publishers, according to the prosecution, in a second antitrust case that will go to trial next week.
As part of the Biden administration’s attempt to control Big Tech through antitrust legislation, the case was brought on by a judge’s ruling on August 5 that Google had an illegal monopoly on online search, which was a significant victory for the Justice Department.
The trial, which starts in Alexandria, Virginia, on Monday, will concentrate on less obvious Google technology that links website producers and advertising, whereas the previous lawsuit concentrated on Google’s widely used search engine.
Over 75% of Google’s $307.4 billion in income in 2018 came from advertising, thanks in part to these advertising technologies.
“Google is far and away the largest seller of advertising on earth. They touch every part of the industry, if not directly, then indirectly. Everyone has an interest in Google one way or another,” said Brian Wieser, an advertising consultant and financial analyst.
A group of states and the Justice Department will try to prove that Google violated US antitrust laws when it came to its digital advertising operations. If the states and the Justice Department prevailed, it would pave the way for them to request that U.S. District Judge Leonie Brinkema divide the firm.
By linking its tools for publishers and advertisers together, Google is accused by antitrust authorities of controlling the markets for the technology underlying online advertisements and securing a “privileged position as the middleman.”
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