The US court's decision could disrupt Google's business model, which relies primarily on advertising. The search engine was found guilty of breaking the law to establish its dominance in the online advertising technology market. This judgment comes after a trial held last September, initiated by a complaint from the US Department of Justice (DoJ) and several states.
Google's nightmare
The case, filed in 2023, specifically targeted the opaque and hyper-concentrated operation of the digital advertising ecosystem. This system relies on tools like Google Ad Manager, which organize auctions in milliseconds for the display of ads as soon as an Internet user opens a web page. This sector brought in $31 billion to Google in 2023, or about 10% of its total revenue.
Federal Judge Leonie Brinkema found that Google had adopted illegal behavior to control the technological infrastructure allowing advertising to be displayed on websites. This dominance, built in particular thanks to The acquisition of DoubleClick in 2008 for $3.1 billion allowed the group to capture a disproportionate share of the revenue generated by each advertising transaction, according to the Justice Department. Google now controls 87% of this market.
"This exclusionary behavior has harmed publishers, the competitive process and, ultimately, Internet users," declared Judge Brinkema. Small consolation for Google: some of the accusations were dismissed, but the judgment validates the essential part of the government's complaint. The web giant had pleaded that its tools were simply demonstrating better integration and that it remained in competition with other players, including social networks and streaming platforms. Without convincing. Google believes however to have won "half of the case" and promises to appeal to win the second half.
The plaintiffs now want Google to be forced to divest some of its advertising activities. If this were to be implemented, it would be a historic upheaval for the company. Google is also facing Another front: last summer, the group was found guilty of abusing its dominant position, this time in the online search sector. The key was a possible split of Chrome.
Google management, and in particular its CEO Sundar Pichai, have tried to get closer to the Trump administration, notably through a million-dollar check paid for the new president's inauguration. But these gestures to obtain favors have not had the desired effects so far. Between Chrome and its advertising business, Google is facing... the existential threat of a large-scale takedown.
Source: New York Times
0 Comments