Google’s advertising practices are under intense scrutiny as a United States court conducts an antitrust trial presided over by Judge Amit Mehta.
The trial, which focuses on Alphabet Inc., Google’s parent company, sheds light on the tech giant’s advertising strategies. During the final stages of the trial, spanning two days of closing arguments, Judge Mehta posed probing questions to both parties, keeping his final decision close to the chest.
Central to the trial is the accusation that Google has unlawfully upheld a monopoly in online search and advertising. This allegation includes claims of striking exclusive multibillion-dollar deals with companies like Apple Inc. for default search engine placement, according to initial reports from Bloomberg. Additionally, concerns about Google’s dominance in the advertising sector were addressed, with the government arguing that it has enabled the company to hike prices for advertisers without restraint.
This trial marks the culmination of a six-month-long case, signifying the first antitrust trial involving a US tech company in more than two decades. Judge Mehta is anticipated to deliver a verdict later this year, potentially mandating Google to reorganize its business operations.
In response to the allegations, Google defended its practices, arguing that search ads are just one of many advertising avenues available. However, Justice Department lawyer David Dahlquist countered, asserting that Google’s search ads are indispensable for reaching consumers and that the company has exploited its dominance to inflate prices and limit transparency for advertisers.
Furthermore, the trial explored Google’s document retention policies, with Judge Mehta expressing concern over the company’s practices. Of particular scrutiny was Google’s “Communicate with Care” program, automatically deleting chat messages after 24 hours. The Justice Department argued that this policy was a deliberate attempt to withhold evidence, while Google maintained that the chats were routinely deleted.
Ultimately, the trial’s outcome holds significant implications, not only for Google but also for the broader tech industry. As Judge Mehta deliberates, Google faces intense scrutiny over its advertising practices and document retention approach, with potential repercussions depending on the final ruling.
