Google is grappling with a number of antitrust challenges in the U.S. as federal authorities increase scrutiny of the tech giant’s business practices.

Closing arguments in the US Department of Justice’s (DOJ) second antitrust lawsuit against Google were held this week in Alexandria, Virginia, and focused on the company’s online advertising technology. Prosecutors allege that Google uses anticompetitive tactics to dominate the ad tech market, reflecting a broader effort to rein in the power of big tech companies.

Google’s advertising dominance comes under scrutiny

The latest trial focuses on Google’s alleged monopoly over online advertising technology, which prosecutors say stifles competition and harms advertisers and publishers alike. At the center of the lawsuit is Google Ad Manager, a platform comprised of publisher ad servers and ad exchanges. Prosecutors argue that the merger gave the company control over key aspects of the digital ad auction.

The Justice Department alleges that Google used its financial power to corner the market, leaving advertisers and publishers with little choice but to rely on its technology. Prosecutors also allege that Google’s dominance of the advertising ecosystem has allowed it to charge higher fees to advertisers while reducing payments to publishers, many of which are less viable. He testified that the lack of alternatives made switching from Google unfeasible.

“The technology may be modern, but the practice is as old as monopoly itself,” said Justice Department attorney Julia Tarver Wood.

If Judge Leonie Brinkema rules against Google, the Justice Department would require the company to at least sell the Google Ad Manager platform, which includes publisher ad servers and ad exchanges.

Justice Department wins Google search monopoly lawsuit

In August, Judge Amit Mehta ruled that Google’s search business constitutes an illegal monopoly in violation of Section 2 of the Sherman Antitrust Act, a major antitrust loss for the tech giant. . The case, which began in 2020, examined Google’s dominance in search and search advertising, particularly its use of exclusive agreements with browser and device manufacturers to make Google the default search engine.

The Department of Justice highlighted Google’s multibillion-dollar deal with Apple to secure its position as Safari’s default search engine for macOS and iOS. Prosecutors argued that such agreements prevented competitors from gaining a foothold in the market and effectively cemented Google’s near-total control over search services.

As a remedy, the Justice Department proposed forcing Google to sell its Chrome browser, which accounts for 60% of the U.S. browser market and acts as a gateway to direct users to Google Search. The Justice Department also proposed that Google syndicate its search data to competitors to level the playing field. Analysts have suggested the measures could cut Google’s advertising revenue by billions of dollars and fundamentally restructure its business model.

Google announced plans to appeal the ruling. This process can last several years.

Google challenges ruling in gaming lawsuit

The antitrust lawsuit brought by Epic Games against Google began in 2020. The popular game Fortnite has been removed from the Google Play Store in an attempt to circumvent Google’s payment system. The lawsuit alleges that Google forced developers to use its own billing system and restricted competing app stores.

In December 2023, a federal jury found Google guilty of anticompetitive conduct and ordered the company to pay a $700 million settlement, including $630 million for consumers and $70 million for state funds. commanded.

On November 22, 2024, Google filed a motion to dismiss the jury’s decision, arguing that the case should have been decided by a judge, not a jury. The company also claimed that the decision did not take into account competition from Apple in the smartphone market. Oral argument on this appeal is scheduled for February 2025.

Other procedures

Google’s challenge extends 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 INR 13.38 billion (approximately USD 162 million) and imposed behavioral remedies to prevent further anti-competitive conduct.

In the European Union, Google faces multiple antitrust investigations, including a 2.42 billion euro fine in 2017 for favoring its own shopping service in search results.

In September 2024, Google proposed selling its ad exchange platform to resolve an EU investigation into its advertising practices following a complaint from the European Publishers Council, which rejected the proposal. I decided that it was enough.