Google is facing yet another antitrust trial, this time concerning the way it grew and operates its giant advertising business. The case was raised by the U.S. Department of Justice and a few states, and a date was just set by a federal judge for a trial later this year. As reported by Reuters, U.S. District Judge Leonie Brinkema set a Sept. 9, 2024 start date for the trial. Google’s federal antitrust trial will take place in the US District Court for the Eastern District of Virginia, and the lawsuit was originally filed in January 2023.
The Sept. 9 start date for the trial is later than the Department of Justice and the associated states hoped for. They requested a start date of July 8. However, Brinkema explained in a court order that a trial in the summer months would result in logistical problems. Specifically, the judge thought it would be difficult to find a jury that would be available for Google’s lengthy federal antitrust trial in the summer. We don’t know how long this trial could drag on, but Google’s last antitrust trial spanned multiple weeks last fall.
What the DOJ and Google say about the federal antitrust trial
The Department of Justice antitrust lawsuit hinges on Google’s advertising business. It alleges that Google illegally grew the ad-tech business through anti-competitive practices, such as mergers and deals with websites. As noted by CNN, this case represents the first one raised against a big tech company by President Joe Biden’s administration. The outcome could set a precedent for more lawsuits against other companies in the future, if successful.
Although Google hasn’t commented on the Sept. 9 trial date, it has shared its opinion on the lawsuit previously. Google said in one instance that the case reflects “a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow,” as reported by CNN. Separately, Reuters reports that Google said a successful outcome for the federal antitrust trial would “slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.”
What implications could this have for Google?
Google’s advertising business is bigger than you might think. Alphabet, the parent company of Google, released its quarterly earnings report last week. Out of the $86 billion in total revenue that the company reported, a whopping $66 billion came from its ad-tech business. The federal government also has said it wants Google to sell its Ad Manager software, which is a suite of services that help publishers understand and grow ad revenue. Put simply, if Google were to lose this trial, it would be a big hit to the company.