Google began responding to allegations of illegal monopoly in online ad technology on Friday. Google’s first witness in the case, Scott Shaffer, said the ad industry is complex and competitive. Google lawyers urged the court to avoid taking action in cases of rapidly evolving technology because it could lead to bad decisions and unforeseen consequences.
The government alleges Google’s auction process harms competitors, giving itself a special advantage. Prosecutors asked witnesses for information on how automated ad exchanges conduct auctions in just a few milliseconds. Google argued in the case that competition is not limited to its ad technology, but also from social media and companies like Amazon.
Google claims its technology earns it 36 cents on every ad purchase, which translates into billions of dollars. Media executives have also raised concerns about Google’s control over advertising technology, which impacts both publishers and advertisers.
The government, in a complaint letter last year, requested that Google sell a part of its business to break its monopoly. The case has been going on in court since September 9, while a separate case is also going on in Washington DC regarding Google’s core business. Recently, Google won an antitrust case in Europe when the court overturned a 1.49 billion euro fine imposed on it.
Google’s advertising technology brings in billions of dollars in revenue annually, while its search engine remains the main source of profit. The case highlights important aspects of Google’s business model and how it affects competition in the advertising industry.