Google's US antitrust trial over online ad empire winds down
ALEXANDRIA, Virginia — The U.S. Justice Department told a federal judge that Google illegally dominated online advertising technology in seeking a second antitrust win against the company.
The closing arguments in Alexandria cap a 15-day trial held in September in which prosecutors sought to show Google monopolized markets for publisher ad servers and advertiser ad networks and tried to dominate the market for ad exchanges, which sit between buyers and sellers.
“Google rigged the rules of the road,” said DOJ lawyer Aaron Teitelbaum, who asked the judge to hold Google accountable for anti-competitive conduct and added that Google is "once, twice, three times a monopolist."
Another DOJ lawyer, Julia Tarver Wood, compared the case to the Charles Dickens novel A Tale of Two Cities and said U.S. Judge Leonie Brinkema had to decide whether to adopt the DOJ or Google version of the state of the ad market.
Google lawyer Karen Dunn said the DOJ had not met its legal burden and was asking Brinkema to overrule key precedents. "The law simply does not support what the plaintiffs are arguing in this case," Dunn said.
She argued the DOJ was ignoring Google's legitimate business decisions and the robust quality of the online advertising market. The company argues the government had cherry-picked a narrow slice of the online market and did not account for aggressive competition.
Shares of Alphabet, the parent company of Google, were up 1.4% in afternoon trading.
Publishers testified at the trial that they could not switch away from Google, even when it rolled out features they disliked, since there was no other way to access the huge advertising demand within Google's ad network.
In 2017, News Corp estimated losing at least $9 million in ad revenue that year if it had switched away, one witness said.
If Brinkema finds that Google broke the law, she would consider prosecutors' request to make Google at least sell off Google Ad Manager, a platform that includes the company's publisher ad server and its ad exchange.
Google offered to sell the ad exchange this year to end a European Union antitrust investigation, but European publishers rejected the proposal as insufficient, Reuters first reported in September.
Analysts view the ad tech case as a smaller financial risk than the case in which a judge ruled Google maintains an illegal monopoly in online search, and in which prosecutors have argued the company must be forced to sell its Chrome browser.
The closing arguments in Alexandria cap a 15-day trial held in September in which prosecutors sought to show Google monopolized markets for publisher ad servers and advertiser ad networks and tried to dominate the market for ad exchanges, which sit between buyers and sellers.
“Google rigged the rules of the road,” said DOJ lawyer Aaron Teitelbaum, who asked the judge to hold Google accountable for anti-competitive conduct and added that Google is "once, twice, three times a monopolist."
Another DOJ lawyer, Julia Tarver Wood, compared the case to the Charles Dickens novel A Tale of Two Cities and said U.S. Judge Leonie Brinkema had to decide whether to adopt the DOJ or Google version of the state of the ad market.
Google lawyer Karen Dunn said the DOJ had not met its legal burden and was asking Brinkema to overrule key precedents. "The law simply does not support what the plaintiffs are arguing in this case," Dunn said.
She argued the DOJ was ignoring Google's legitimate business decisions and the robust quality of the online advertising market. The company argues the government had cherry-picked a narrow slice of the online market and did not account for aggressive competition.
Shares of Alphabet, the parent company of Google, were up 1.4% in afternoon trading.
Publishers testified at the trial that they could not switch away from Google, even when it rolled out features they disliked, since there was no other way to access the huge advertising demand within Google's ad network.
In 2017, News Corp estimated losing at least $9 million in ad revenue that year if it had switched away, one witness said.
If Brinkema finds that Google broke the law, she would consider prosecutors' request to make Google at least sell off Google Ad Manager, a platform that includes the company's publisher ad server and its ad exchange.
Google offered to sell the ad exchange this year to end a European Union antitrust investigation, but European publishers rejected the proposal as insufficient, Reuters first reported in September.
Analysts view the ad tech case as a smaller financial risk than the case in which a judge ruled Google maintains an illegal monopoly in online search, and in which prosecutors have argued the company must be forced to sell its Chrome browser.