The US government is taking aim at the engine of Google's immense wealth - its extremely lucrative ad tech business. #googlenewslive #googlenews #hotbreakingnews #news #livebbcnews #livenews
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00:00The US government is taking aim at the engine of Google's immense wealth,
00:04its extremely lucrative ad tech business.
00:07A trial beginning on Monday will hear the Department of Justice's case that the
00:11search engine's parent company Alphabet illegally operates a monopoly in the market.
00:16The company earned more than $200 billion, £152 billion, last year through the placing
00:23and selling of ads seen by internet users. Alphabet has argued its success is due to the
00:29effectiveness of its services, but prosecutors say it has used its market dominance to stifle
00:35rivals. It is a really important industry that grabs billions of consumer dollars every year,
00:41said Laura Phillips Sawyer, a professor at the University of Georgia School of Law.
00:46I think all consumers have an interest in this litigation.
00:50It is the second major antitrust case the tech giant has faced in the US.
00:55In August a judge ruled its dominance of search was illegal, with the penalties
00:59Google and Alphabet will face as a result of that decision so far unclear.
01:04According to the lawsuit filed by the Department of Justice DOJ and a coalition of states in 2023,
01:11Google dominates the digital ad marketplace and has leveraged its market power to stifle
01:16innovation and competition. Google meanwhile contends it is just one of several hundred
01:21companies that facilitate the placement of digital ads in front of consumers.
01:26It argues that competition in the digital ad space is growing, not contracting,
01:31citing increased ad growth and revenues for companies such as Apple,
01:35Amazon and TikTok as proof in a blog post responding to the DOJ's lawsuit in 2023.