Legally, it has been a difficult year for Google, as the company has been embroiled in a legal battle with the Department of Justice. The prosecution has focused on the company’s monopolistic practices regarding the digital advertising market by illegally leveraging its tools and platforms to discourage competition.
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Subscribe (it's FREE) ►Now, it seems that the legal matter is reaching a crucial moment, as both parties present their final arguments on the ongoing case. Most importantly, will Google have to sell its Chrome browser to satisfy the Department of Justice?
Although Google is aggressively innovating and evolving its technology, especially in terms of advancing the company’s AI capabilities, the legal pressure it has been facing amid its pursuit of growth has been immense, especially in recent months.
A trial that could determine the future of technology
The U.S. Department of Justice has set its sights on the search engine giant for its monopolistic practices to suppress competition in the digital advertising market.
Now, the case is reaching its final phase, with the two parties involved meeting in a court in Alexandria, Virginia, to present their version of the story for the last time through The Verge.
The session lasted three hours, and the lawyers from both sides presented their closing arguments before Judge Leonie Brinkema, of the United States District Court. The judge is expected to issue a ruling by the end of the year, which could change the functioning of the online advertising sector.
The Department of Justice elaborated on its allegations that Google has been illegally using its advertising technology products, such as the AdX exchange and DoubleClick for Publishers (DFP), to maintain dominance in the digital advertising space.
Google, in its defense, argues that its operations exist in a competitive environment where they have to face challenges from other companies in the sector. It is against reaching agreements with competitors, as it would reduce its ability not only to innovate effectively but also to compete. The search giant claims that its dominance in the sector is not as absolute as the DOJ asserts.
One of the key issues highlighted in the case is the definition of the market in which Google’s operations are framed. The DOJ strongly suggests that Google dominates not just one market, but that the monopoly extends to three markets: publisher ad servers, ad exchanges, and advertiser ad networks.
The resolution of the case would largely depend on Google’s market definition and could completely change the outcome depending on whether the court sides with the segmented or unified approach. The DOJ has other legal proceedings against the company, and it turns out this is not the only battle it has to fight.
