Google is facing a series of antitrust challenges in the United States as federal authorities step up scrutiny of the tech giant’s business practices.
Closing arguments were made this week in Alexandria, Virginia, in the US Department of Justice’s (DOJ) second antitrust case against Google, which focuses on the company’s online advertising technology. Prosecutors allege that Google used anticompetitive tactics to dominate the advertising technology market, echoing a broader effort to curb the power of big tech companies.
Google’s advertising domain under scrutiny
The latest trial centers on Google’s alleged monopolization of online advertising technology, which prosecutors say stifles competition and harms both advertisers and publishers. At the center of the case is Google Ad Manager, a platform that includes its publisher ad server and ad exchange. Prosecutors argue that this integration allowed the company to control key aspects of digital ad auctions.
The Justice Department alleges that Google used its financial power to corner the market, leaving advertisers and publishers little choice but to rely on its technology. Prosecutors also argue that Google’s control of the advertising ecosystem allowed it to charge higher fees to advertisers while reducing payments to publishers, many of whom testified that abandoning Google was not feasible due to a lack of viable alternatives .
“This technology may be modern, but the practices are as old as monopolies themselves,” said Justice Department attorney Julia Tarver Wood.
If Judge Leonie Brinkema were to rule against Google, the DOJ required that the company at least divest its Google Ad Manager platform, which includes the company’s publisher ad server and its ad exchange.
Justice Department Victory in Google Search Monopoly Case
In August of this year, Judge Amit Mehta ruled that Google’s search business was an illegal monopoly in violation of Section 2 of the Sherman Antitrust Act, marking a significant antitrust loss for the tech giant. This trial, which began in 2020, examined Google’s dominance in search and search advertising, particularly its use of exclusive deals with browser and device makers to set Google as the default search engine.
The Justice Department highlighted Google’s multibillion-dollar deal with Apple to secure its position as the default search engine on Safari for macOS and iOS. Such agreements, prosecutors argued, prevented competitors from gaining a foothold in the market, effectively solidifying Google’s near-total dominance of search services.
As a remedy, the Justice Department has proposed forcing Google to sell its Chrome browser, which captures 60% of the US browser market and serves as a gateway to direct users to Google Search. The Justice Department also proposed that Google distribute its search data to competitors to level the playing field. Analysts suggest that these measures could cut Google’s advertising revenue by billions of US dollars, fundamentally reshaping its business model.
Google has announced its intention to appeal the ruling. The process could take several years.
Google disputes ruling in gaming case
An antitrust lawsuit filed by Epic Games against Google began in 2020. The popular game Fortnite has been removed from the Google Play Store for attempting to bypass Google’s payment system. The case alleged that Google forced developers to use its proprietary billing system and restricted competing app stores.
In December 2023, a federal jury found Google guilty of anticompetitive practices and ordered the company to pay $700 million in damages, with $630 million going to consumers and $70 million to state funds.
On November 22, 2024, Google filed a motion to dismiss the jury’s decision, arguing that the case should have been decided by the judge rather than a jury. The company also said that the decision did not take into account competition with Apple in the smartphone market. Oral arguments on this appeal are scheduled for February 2025.
Other proceedings
Google’s challenges have extended beyond the United States. In October 2022, the Competition Commission of India (CCI) found Google guilty of abusing its dominant position in the Android market. The CCI fined Google 13.38 billion Indian rupees (about $162 million) and imposed behavioral measures to prevent further anti-competitive practices.
In the European Union, Google has faced numerous antitrust investigations, including a 2.42 billion euro fine in 2017 for favoring its own shopping service in search results.
In September 2024, Google offered to sell its ad exchange platform to resolve an EU investigation into its advertising practices, following a complaint from the European Publishers Council, but the council deemed the proposal insufficient.