Google and DOJ Make Final Arguments in Ad Tech Monopoly Case

Elliot Kim

Elliot Kim

November 26, 2024 · 3 min read
Google and DOJ Make Final Arguments in Ad Tech Monopoly Case

In a pivotal moment for the tech industry, Google and the US Department of Justice (DOJ) presented their final arguments in a federal court in Alexandria, Virginia, marking the culmination of a lengthy legal battle over Google's alleged monopoly in online advertising technology.

The DOJ alleges that Google has abused its market power by leveraging its suite of ad tech products, including DoubleClick for Publishers (DFP) and the AdX exchange, to strong-arm site owners and advertisers. In contrast, Google maintains that it faces competition from other sources and should not be forced to make concessions to competitors. The outcome of this case will have far-reaching implications for the digital advertising landscape.

One of the central disputes in the case revolves around the definition of the relevant market. The DOJ argues that Google operates in three separate ad markets: publisher ad servers, ad exchanges, and advertiser ad networks. Google, on the other hand, contends that there is a single, two-sided market for digital ads, pitting it against social media companies like Meta and TikTok. The DOJ has criticized Google's comparison to a 2018 Supreme Court precedent, Ohio v. American Express, which dealt with a different set of circumstances.

During the closing arguments, US District Court Judge Leonie Brinkema pushed back on both sides' arguments, demonstrating a solid grasp of the complex technical issues at play. She questioned the DOJ's focus on publishers and ad agencies, rather than advertisers themselves, and asked Google's counsel to explain why the company's products are not more interoperable with other ad tech services.

Google's legal strategy has also relied on a 2004 ruling, Verizon v. Trinko, which established that companies are not required to share their networks with competitors. The DOJ has countered that this precedent does not apply to Google's conduct, as it involves refusing to deal with its own customers. Judge Brinkema appeared skeptical of the DOJ's argument, suggesting that Google's AdX exchange is in direct competition with other ad exchanges and is not customer-facing.

Another contentious issue in the case is Google's alleged deletion of chat messages that could have been damaging to its case. The DOJ has requested that Judge Brinkema draw an adverse inference against Google whenever she is uncertain about the content of deleted messages. Google's counsel, Karen Dunn, argued that most deleted messages were innocuous and that the DOJ was cherry-picking ominous-sounding lines from internal documents.

Judge Brinkema is expected to rule on the case by the end of 2024. If she finds Google's ad tech system to be a monopoly, the case will proceed to a second trial to determine remedies. The outcome of this case will have significant implications for the digital advertising industry and could potentially lead to changes in Google's business practices.

The stakes are high, and the tech industry is watching closely as the DOJ and Google await Judge Brinkema's decision. The verdict will not only impact Google's dominance in online advertising but also shape the broader regulatory landscape for tech giants in the United States.

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