The U.S. Department of Justice (DOJ) has accused Google of unlawfully monopolizing the online display advertising market. The trial, which concluded on November 25, 2024, focused on allegations that Google manipulated the rules of the advertising technology (adtech) market to maintain its dominance. Prosecutors argued that Google’s control over publisher ad servers, advertiser ad networks, and ad exchanges stifled competition and harmed publishers.
Google defended itself by stating that the case was based on outdated practices and that it was merely improving its services. The DOJ lawyer Aaron Teitelbaum stated, “Google rigged the rules of the road,” and asked the judge to hold Google accountable for anticompetitive conduct. Publishers testified at trial that they could not switch away from Google, even when it rolled out features they disliked, since there was no other way to access the huge advertising demand within Google’s ad network.
News Corp. in 2017 estimated losing at least $9 million in ad revenue that year if it had switched away, one witness said. If U.S. District Judge Leonie Brinkema finds that Google broke the law, she would consider prosecutors’ request to make Google at least sell off Google Ad Manager, a platform that includes the company’s publisher ad server and its ad exchange. Google offered to sell the ad exchange this year to end an EU antitrust investigation but European publishers rejected the proposal as insufficient, as reported in September.
Analysts view the ad tech case as a smaller financial risk than the case where a judge ruled Google maintains an illegal monopoly in online search and where prosecutors have argued the company must be forced to sell its Chrome browser. Zoom shares were down 4% in extended trading on Monday after the video calling software maker announced strong fiscal third-quarter results and gave quarterly guidance that was just slightly above expectations.
Zoom’s revenue grew about 4% year over year in the quarter, which ended on Oct. 31, according to a statement. Zoom called for $1.29 to $1.30 in fiscal fourth-quarter adjusted earnings per share on $1.175 billion to $1.180 billion in revenue. Analysts surveyed by LSEG were expecting $1.29 per share and $1.17 billion in revenue. Zoom bumped up its view for the 2025 fiscal year. It expects $5.41 to $5.43 in adjusted earnings per share, with $4.656 billion to $4.661 billion in revenue.
The outcome of this trial could have significant implications for Google and the broader tech industry. If Google is found guilty, it may be required to divest parts of its adtech business, including Google Ad Manager. This case is part of a broader effort by regulators to curb the power of big tech companies and ensure fair competition in the digital marketplace.
