Google faces a crucial moment in its "fate of splitting": next week's court hearing, the US Department of Justice targets its digital advertising business
Google is expected to appear in court next week to face questioning from the US Department of Justice regarding its digital advertising business and antitrust issues. This case is one of the major antitrust cases, with the Department of Justice and various states aiming to prove that Google has violated antitrust laws in digital advertising. If successful, this may lead to demands for a breakup. Google executives will face questioning, with the trial focusing on the influence of its advertising tools
According to CNBC, Google (GOOGL.US) executives are expected to appear in court next week to face questioning from the US Department of Justice regarding profit from advertising issues. The company was previously found guilty of illegal monopoly in online search in a major antitrust case. The Department of Justice and several states will seek to prove that Google violated US antitrust laws in its digital advertising business. If successful, the states and the Department of Justice will lay the groundwork for a court order to break up the company by US District Judge Leonie Brinkema.
Antitrust regulators claim that Google has dominated the technology market behind website advertising by bundling tools it provides to publishers and advertisers, giving it a "privileged position as an intermediary." However, Google denies these allegations.
While the focus of the case is Google's ubiquitous search engine, Monday's trial will focus on the less visible technology that connects Google with website publishers and advertisers. These advertising tools contributed to over 75% of Google's $307.4 billion in advertising revenue last year.
This is the second major antitrust case. The Department of Justice claims that Google controls 91% of the ad server market. However, Google argues that when considering ads on social media, streaming TV, and apps, its market share in these areas is only 30% or less.
The trial is set to take place in Virginia next Monday, where current or former executives of News Corp (NWSA.US), Daily Mail, and Gannett (GCI.US) may testify. Gannett has previously sued Google.
Justice Department officials will question how the company profits from advertising. Google's approach to its advertising technology will be a key focus of the trial, with over 20 current or former employees and executives expected to testify, including YouTube CEO Neal Mohan, who was a former advertising executive at Google