Google is grappling with a number of antitrust challenges in the United States as federal authorities intensify their scrutiny of the tech giant’s business practices.
Closing arguments were presented this week in Alexandria, Virginia, in the US Justice Department’s (DOJ) second antitrust case against Google, focusing on the company’s online advertising technology. Prosecutors allege Google has used anti-competitive tactics to dominate the ad tech market, echoing a broader effort to curb the power of large technology firms.
Google’s advertising dominance under scrutiny
The latest trial centres on Google’s alleged monopolisation of online advertising technology, which prosecutors claim stifles competition and harms both advertisers and publishers. Central to the case is Google Ad Manager, a platform comprising its publisher ad server and ad exchange. Prosecutors argue this integration has enabled the company to control key aspects of digital ad auctions.
The DOJ 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 further claim Google’s control of the ad ecosystem allowed it to impose higher fees on advertisers while reducing payouts to publishers, many of whom testified that switching away from Google was not feasible due to the lack of viable alternatives.
“This technology may be modern, but the practices are as old as monopolies themselves,” said DOJ lawyer Julia Tarver Wood.
If Judge Leonie Brinkema rules against Google, the DOJ has requested that the company at least divest its Google Ad Manager platform, which includes the company’s publisher ad server and its ad exchange.
DOJ victory in Google’s search monopoly case
In August 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 agreements with browser and device manufacturers to set Google as the default search engine.
The DOJ highlighted Google’s multi-billion-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 DOJ proposed forcing Google to sell its Chrome browser, which captures 60% of the US browser market and serves as a gateway for directing users to Google Search. The DOJ also proposed that Google syndicate its search data to competitors to level the playing field. Analysts suggest these measures could cut into Google’s advertising revenues by billions of US dollars, fundamentally reshaping its business model.
Google has announced plans to appeal the ruling. The process could extend for several years.
Google challenges gaming case ruling
An antitrust case brought by Epic Games against Google began in 2020. The popular game Fortnite was 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 anti-competitive practices and ordered the company to pay $700m in settlements, including $630m designated for consumers and $70m for state funds.
On 22 November 2024, Google filed a request to dismiss the jury’s decision, arguing that the case should have been decided by the judge rather than a jury. The company also claimed the decision failed to account for competition with Apple in the smartphone market. Oral arguments for 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 13.38bn Indian rupees (approximately US$162m) and imposed behavioural remedies to prevent further anti-competitive practices.
In the European Union, Google has faced multiple antitrust investigations, including a €2.42bn fine in 2017 for favouring 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 found the proposal insufficient.