The closing arguments in the U.S. Department of Justice’s (DOJ) antitrust case against Google’s advertising technology business are set to begin today, Monday, November 25. The industry is watching to see how the trial’s outcome could impact digital advertising not only in the U.S. but also in Canada as the DOJ is asking that Google be forced to divest some or all of its ad tech products.
The government’s argument is that Google has used its market power to monopolize the online search market and that Google has made deals with companies like Apple and phone manufacturers to make itself the default search engine on browsers and phones. In addition, the DOJ says Google has worked to suppress competition in the digital ad space by controlling the tools used to buy and sell ads, as well as the platform where ads are placed. It alleges that Google controls up to 91% of the ad server market, limiting competition and inflating prices.
Because of that, the DOJ is also asking that Google be forced to sell off its Chrome web browser because it says it illegally monopolized the search market. Unwinding Chrome from Google’s ecosystem would require significant consideration of its cascading effects on competition, privacy, and monopoly concerns. Regulators would need to carefully assess the potential consequences, ensuring that the market has adequate time to adapt. The stakes are particularly high, given Chrome’s dominant role in setting web standards and the advertising industry’s reliance on its infrastructure.
Regardless of the outcome, the case will still be tied up in the court for the foreseeable future. Google will have a chance to respond next month with its own plan before the judge makes a ruling next year. Even then, Google plans to fight any decision, delaying the process a few more years. With a change in the U.S. government, it remains to be seen if they’ll want to pursue this as heavily as the current administration is.