*
Justice Department alleges Google stymied competition in
online
ad tech
*
Google denies allegations, citing competition in apps and
connected TV
*
Trial to feature witnesses from Google, competitors and
publishers
By Jody Godoy
Sept 9 (Reuters) - Alphabet's Google will face
U.S. antitrust prosecutors on Monday in Alexandria, Virginia,
where the Justice Department will seek to show the company
stifled competition in online advertising technology, in the
search giant's second recent showdown with the Justice
Department.
Prosecutors say Google has largely dominated the technological
infrastructure that funds the flow of news and information on
websites through more than 150,000 online ad sales every
second.
The case is an important one for efforts by U.S. antitrust
enforcers to challenge alleged Big Tech monopolies, which have
spanned the administrations of both Donald Trump and Joe Biden.
Prosecutors say Google engaged in a complex scheme to
dominate website advertising tools, through acquisitions,
restrictions on how customers can use its tools and alleged
manipulation of ad auctions.
Google denies the allegations, saying they misconstrue
lawful efforts to develop its technology and serve its own
customers. Prosecutors overlook how the digital advertising
market has shifted to apps and connected TV, where Google faces
stiff competition, the company has said.
If U.S. District Judge Leonie Brinkema finds that Google
broke the law, she would later consider prosecutors' request to
make Google sell off, at minimum, Google Ad Manager, a platform
that includes Google's publisher ad server and its ad exchange.
According to research by stock analyst Wedbush, Google's ad
tech tools accounted for $20 billion, or 11% of the company's
gross revenue in 2020 and around $1 billion, or 2.6%, of
operating profit that year.
Ad Manager represented 4.1% of revenue and 1.5% of operating
profit in 2020, according to Wedbush research and analysis of
court documents.
More recent figures were redacted from court documents.
Google's defense team is led by Karen Dunn, a partner at the law
firm Paul, Weiss, who has guided debate preparations for several
prominent Democrats including Vice President Kamala Harris.
The government's legal team is headed by Julia Tarver Wood,
a veteran trial lawyer who joined the Justice Department last
year. She previously worked at Paul, Weiss where she represented
companies including insurer American International Group ( AIG )
, Mastercard ( MA ) and Amazon.com ( AMZN ).
The multiweek trial is expected to feature witnesses from
Google and competitors in the digital advertising space such as
the Trade Desk ( TTD ), and Comcast ( CMCSA ) as well as
publishers including News Corp ( NWSA ) and Gannett ( GCI ), who
prosecutors say were harmed through Google's conduct.
The case is one of several challenging alleged Big Tech
monopolies.
The Justice Department won a ruling against Google last month in
another case over its dominance in online search, and is
separately suing Apple ( AAPL ). The U.S. Federal Trade
Commission is pursuing cases against Facebook parent Meta
Platforms ( META ) and Amazon ( AMZN ).