Google's "breakup" case reaches a key juncture: trial starts next week, US DOJ targets digital advertising business

Market VisionWednesday, Sep 4, 2024 10:00 am ET

1min read

Intelligence from Zhitong Finance indicated that Google (GOOGL.US) executives are expected to appear in court next week to face questioning from the US Department of Justice over its advertising revenue, after the company was found guilty of illegal monopolization of online search in a major antitrust case. The US Department of Justice and multiple states will seek to prove that Google violated US antitrust laws in its digital advertising business, according to the report. The states and the Department of Justice would reportedly set the stage for their request for US District Judge Leonie Brinkema to order the company to be broken up if they win.

Antitrust regulators have alleged that Google dominated the market for technology behind website ads by bundling together tools it offers to publishers and advertisers. Google has denied the claims.

While the case has focused on Google's ubiquitous search engine, the trial next Monday will focus on the less visible technology that connects publishers and advertisers. Those tools accounted for more than 75% of Google's $307.4 billion in advertising revenue last year.

The trial is reportedly the second major antitrust case. The US Department of Justice said Google controls 91% of the market for advertising services. But Google said its share of those markets is 30% or less, including social media, streaming television and apps.

The trial is reportedly set to begin next Monday in Virginia, and current or former executives of News Corp (NWSA.US), the Daily Mail and Gannett (GCI.US) may testify, according to the report. Gannett sued Google.

US Department of Justice officials will question the company on how it makes money from advertising. The way Google views its advertising technology is reportedly set to be a key focus of the trial, with more than two dozen current and former employees and executives, including YouTube chief executive Neal Mohan, who was a Google advertising executive, set to testify.

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