US DOJ vs Google 'Advertising Antitrust' Lawsuit Begins

The U.S. government's second antitrust lawsuit against Google began on the 9th (local time). Following a loss in the previous antitrust lawsuit concerning the online search market, Google now faces an antitrust lawsuit related to advertising.

Last January, the U.S. Department of Justice (DOJ) filed a lawsuit alleging that Google violated antitrust laws by blocking competition through acquiring related companies in the online advertising market.

[Image source=Reuters Yonhap News]

Previously, the DOJ filed an antitrust lawsuit in October 2020, claiming that Google hindered competition by paying substantial sums to companies like Apple to set its search engine as the default in the online search engine market, and won the case last month.

At the first trial held in the U.S. District Court for the Eastern District of Virginia, the DOJ argued, "Google controls competitors and customers, dominating every aspect of online advertising technology."

The DOJ stated, "Google is here not because it is a large company, but because it used 'classic monopoly-building tactics' by eliminating competitors through acquisitions and ensuring customers use its products, controlling how transactions occur in the online advertising market." It also said, "By gaining software superiority in both ad buying and selling, Google takes up to 37 cents of every dollar when brokering sales between publishers (content creators and distributors) and advertisers." According to the DOJ, Google's market share in the global ad server and advertiser network market reaches 90%.

Google countered that the DOJ's claims are not true. It argued that customers choose Google because its services are the best, not because of monopoly, and that Google faces intense competition.

Google's attorney said, "We have advanced this field through investment in research and development (R&D), and face various competitors ranging from well-known companies like Microsoft (MS) and Disney to smaller firms," adding, "We are a large company competing fiercely among many others." The attorney also claimed that if Google loses, the beneficiaries would not be publishers or advertisers but companies like MS, Amazon, Meta, and TikTok.

If Google loses this trial, the impact is expected to be significant. As of the second quarter, advertising through the search engine accounts for about 76% of Google's total revenue. If Google loses, it may face the risk of being forced to divest its advertising management platform, Google Ad Manager.