The trial of the US federal government against Google, which it accuses of abusing its monopoly position in the online advertising market, began on Monday in federal court in Alexandria, Washington. The trial has potentially major implications for the finances of online media.
As Julia Tarver Wood, a representative of the Ministry of Justice, said at the opening of the hearing, Google dominated the online advertising market through acquisitions of rivals and achieved such a strong position that it could set rules for advertising auctions that were favorable to it, representing both buyers and sellers.
Dispute over Google's position
In its complaint, the ministry pointed out that even the giant's directors wondered about the legality of such an arrangement, comparing it in internal emails to a situation in which investment banks such as Goldman Sachs or JPMorgan owned the New York Stock Exchange on Wall Street. The prosecutor's office claims that the result is higher prices for advertisers and, at the same time, lower revenues for online media publisherswho pay Google to broker ad sales. Prosecutors are seeking an order that Google sell its Ad Manager platform, which is a tool for managing the buying and selling of ads and analyzing them. Google's lawyer, Karen Dunn, said the company's position stems from the best quality of services and that it is not true that the company does not have significant competition. She pointed to other Big Tech companies, including Microsoft, Meta and Amazon, as companies whose market position is growing and which would benefit the most if Google lost the case. The trial is being closely watched by media publishers, many of whom use Google's services and rely on ad sales for their finances. Some, like Gannett, publisher of USA Today and other newspapers, have accused Google of having to shut down some of its media because of the large commission it collects from the giant. The company itself claims that if the court forces it to sell part of its advertising empire, small businesses that use its services will suffer.
Second proceeding
The trial that began on Monday – and could take many weeks – is the second antitrust case against GoogleIn a separate case in August, a Washington court ruled that Google had illegally abused its monopoly position in the search engine space. The court has not yet decided on a penalty or remedy. According to media reports, one possible solution is to split Google, such as selling the Chrome browser.
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