One month after a judge declared Google's search engine an illegal monopoly, the tech giant faces another antitrust lawsuit that threatens to break up the company, this time over its advertising technology.
The Justice Department, joined by a coalition of states, and Google each made opening statements Monday to a federal judge who will decide whether Google holds a monopoly over online advertising technology.
The regulators contend that Google built, acquired and maintains a monopoly over the technology that matches online publishers to advertisers. Dominance over the software on both the buy side and the sell side of the transaction enables Google to keep as much as 36 cents on the dollar when it brokers sales between publishers and advertisers, the government contends in court papers.
They allege that Google also controls the ad exchange market, which matches the buy side to the sell side.
"One monopoly is bad enough. But a trifecta of monopolies is what we have here," Justice Department lawyer Julia Tarver Wood said during her opening statement.
Google says the government's case is based on an internet of yesteryear, when desktop computers ruled and internet users carefully typed precise World Wide Web addresses into URL fields. Advertisers now are more likely to turn to social media companies like TikTok or streaming TV services like Peacock to reach audiences.
In her opening statement, Google lawyer Karen Dunn likened the government's case to a "time capsule with with a Blackberry, an iPod and a Blockbuster video card."
Dunn said Supreme Court precedents warn judges about "the serious risk of error or unintended consequences" when dealing with rapidly emerging technology and considering whether antitrust law requires intervention. She also warned that any action taken against Google won't benefit small businesses but will simply allow other tech behemoths like Amazon, Microsoft and TikTok to fill the void.
According to Google's annual reports, revenue has actually declined in recent years for Google Networks, the division of the Mountain View, California-based tech giant that includes such services as AdSense and Google Ad Manager that are at the heart of the case, from US$31.7 billion in 2021 to US$31.3 billion in 2023,
The trial that began Monday in Alexandria, Virginia, over the alleged ad tech monopoly was initially going to be a jury trial, but Google maneuvered to force a bench trial, writing a check to the federal government for more than US$2 million to moot the only claim brought by the government that required a jury.
The case will now be decided by U.S. District Judge Leonie Brinkema, who was appointed to the bench by former President Bill Clinton and is best known for high-profile terrorism trials including that of Sept. 11 defendant Zacarias Moussaoui. Brinkema, though, also has experience with highly technical civil trials, working in a courthouse that sees an outsize number of patent infringement cases.
The Virginia case comes on the heels of a major defeat for Google over its search engine, which generates the majority of the company's US$307 billion in annual revenue. A judge in the District of Columbia declared the search engine a monopoly, maintained in part by tens of billions of dollars Google pays each year to companies like Apple to lock in Google as the default search engine presented to consumers when they buy iPhones and other gadgets.
And in December, a judge declared Google's Android app store a monopoly in a case brought by a private gaming company.
In the search engine case, the judge has not yet imposed any remedies. The government hasn't offered its proposed sanctions, though there could be close scrutiny over whether Google should be allowed to continue to make exclusivity deals that ensure its search engine is consumers' default option.
Peter Cohan, a professor of management practice at Babson College, said the Virginia case could potentially be more harmful to Google because the obvious remedy would be requiring it to sell off parts of its ad tech business that generate billions of dollars in annual revenue.
"Divestitures are definitely a possible remedy for this second case," Cohan said "It could be potentially more significant than initially meets the eye."
In the Virginia trial, the government's witnesses are expected to include executives from newspaper publishers including The New York Times Co. and online news sites that the government contends have faced particular harm from Google's practices.
"Google extracted extraordinary fees at the expense of the website publishers who make the open internet vibrant and valuable," government lawyers wrote in court papers. "As publishers generate less money from selling their advertising inventory, publishers are pushed to put more ads on their websites, to put more content behind costly paywalls, or to cease business altogether."
The government's first witness was Tim Wolfe, an executive with Gannett Co., a newspaper chain that publishes USA Today as its flagship. Wolfe said Gannett feels like it has no choice but to continue to use Google's ad tech products, even thought the company keeps 20 cents on the dollar from every ad purchase, not even accounting for what it takes from the advertisers. He said Gannett simply can't give up access to the huge stable of advertisers that Google brings to the ad exchange.
On cross-examination, Wolfe acknowledged that despite Google's supposed monopoly, Gannett was able to work other competitors to sell its available inventory to advertisers.
The government's case also attempts to use the words of Google's own employees against them. In openings, Justice Department lawyers cited an email sent by a Google employee wondering whether Google's control of the technology on all three sides presented "a deeper issue" to consider.
"The analogy would be if Goldman or Citibank owned the NYSE (New York Stock Exchange)," wrote the employee Jonathan Bellack.
Google disputes that it charges excessive fees compared to its competitors. The company also asserts the integration of its technology on the buy side, sell side and in the middle assures ads and web pages load quickly and enhance security. And it says customers have options to work with outside ad exchanges.
Google says the government's case is improperly focused on display ads and banner ads that load on web pages accessed through a desktop computer and fails to take into account consumers' migration to mobile apps and the boom in ads placed on social media sites over the last 15 years.
The government's case "focuses on a limited type of advertising viewed on a narrow subset of websites when user attention migrated elsewhere years ago," Google's lawyers wrote in a pretrial filing. "The last year users spent more time accessing websites on the `open web,' rather than on social media, videos, or apps, was 2012."
The trial is expected to last several weeks.
A Canadian man who is trapped in Lebanon with his family says they are anxiously waiting for seats on a flight out of the country, as a barrage of Israeli airstrikes continues.
A 21-year-old Yazidi woman has been rescued from Gaza where she had been held captive by Hamas for years after being trafficked by ISIS.
Parts of icy Antarctica are turning green with plant life at an alarming rate as the region is gripped by extreme heat events, according to new research, sparking concerns about the changing landscape on this vast continent.
A 21-year-old man who was charged with attempted murder in the shooting of a Toronto police officer this week was out on bail at the time of the alleged offence, court documents obtained by CTV News Toronto show.
Nearly 30 years after a six-year-old girl disappeared in Western Arkansas, authorities have identified a suspect in her abduction through DNA evidence.
Prosecutors have charged a Michigan man with killing and dismembering a janitor he met on the dating app Grindr.
A teen charged with the murder of another teen on Prince Edward Island last year has pleaded guilty to a lesser charge of manslaughter.
Armed men belonging to the Gran Grif gang killed at least 70 people, including three infants, as they swept through a Haitian town shooting automatic rifles at residents, a spokesperson for the United Nations' Human Rights Office said on Friday.
At least two people are dead and others are injured after a fire ripped through a century-old building near Montreal's City Hall, sources told Noovo Info.
The owners of a North York condominium say they are facing a $70,000 special assessment to fix their building's parking garage. '$70,000 is a lot of money. It makes me very nervous and stressed out of nowhere for this huge debt to come in,' said Ligeng Guo.
The federal Fisheries Department says it is concerned about a "pattern" of violence and threats toward its enforcement officers after two tense incidents off southwestern Nova Scotia last month.
The owner of a Gatineau, Que. café says it's 'silly' that Quebec's language watchdog is telling the business to write its Instagram posts in French.
A teen charged with the murder of another teen on Prince Edward Island last year has pleaded guilty to a lesser charge of manslaughter.
More than half of the 205 firearms lost by the Royal Canadian Mounted Police since 2020 have been recovered, but two machine guns remain missing.
A 21-year-old man who was charged with attempted murder in the shooting of a Toronto police officer this week was out on bail at the time of the alleged offence, court documents obtained by CTV News Toronto show.
Armed men belonging to the Gran Grif gang killed at least 70 people, including three infants, as they swept through a Haitian town shooting automatic rifles at residents, a spokesperson for the United Nations' Human Rights Office said on Friday.
Iran’s supreme leader on Friday praised the country’s recent missile strike on Israel and said it was ready to do it again if necessary, state TV reported.
The U.S. and British militaries struck more than a dozen Houthi targets in Yemen on Friday, going after weapons systems, bases and other equipment belonging to the Iranian-backed rebels, U.S. officials confirmed.
Prosecutors have charged a Michigan man with killing and dismembering a janitor he met on the dating app Grindr.
UN peacekeepers are staying in their positions on Lebanon’s southern border despite Israel’s request to vacate some areas before it launched its ground operation against Hezbollah militants, the UN peacekeeping chief said Thursday.
An Israeli airstrike on a West Bank cafe that the military said targeted Palestinian militants also killed a family of four, including two young children, relatives told The Associated Press on Friday.
Prime Minister Justin Trudeau is set to announce funding to support French-speaking African countries and initiatives to promote the French language in the Francophonie.
Defence Minister Bill Blair says Israel has the right to defend itself in 'a calibrated and proportional way' following Iran’s ballistic missile attack against Israel on Tuesday.
A federal inquiry into foreign interference plans to hear from senior Global Affairs Canada officials Friday.
When an Ontario doctor refused to sign off on a mammogram for 38-year-old Sidra Lone, the mother of four says she was left with no choice but to lie.
Staff at Saskatoon's Royal University Hospital are calling for systemic changes just two days after its emergency room was more than three times above its capacity.
An Ontario child has died after coming in contact with a rabid bat, a health official confirmed on Wednesday.
For humans, flashing a smile is an easy way to avoid misunderstanding. And, according to a new study, bottlenose dolphins may use a similar tactic while playing with each other.
Alphabet's Google is testing showing check marks next to certain companies on its search results, a company spokesperson said on Friday, in a move aimed at helping users identify verified sources and steer clear of fake websites.
A hacking group tied to Russian intelligence tried to worm its way into the systems of dozens of western think tanks, journalists and former military and intelligence officials, Microsoft and U.S. authorities said Thursday.
Jurors have begun their deliberations in the sexual assault trial of Canadian musician Jacob Hoggard.
Legendary singer Paul Simon has said he is 'optimistic' about being able to return to performing live after losing most of his hearing in his left ear.
A painting discovered by a junk dealer in the basement of an Italian villa six decades ago is actually the work of Pablo Picasso and could sell for millions, according to experts.
Canada's airlines have failed in their challenge of air passenger protection rules that the federal government implemented in 2019.
The Competition Bureau says it's obtained a court order as part of an investigation into potential anti-competitive conduct by the Canadian Real Estate Association.
The Vatican Bank has fired two employees whose recent wedding violates a newly-introduced ban on marriages between staff.
A five-seat sushi counter located inside another restaurant is the latest Vancouver eatery to receive a Michelin star.
Toilet paper shortages in stores across America are giving folks nightmarish reminders of the pandemic era. But the lack of toilet paper isn’t a direct result of a major port strike Tuesday. It’s because of panic buying.
What does New Westminster's təməsew̓txʷ Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.
Caitlin Clark has been named the WNBA Rookie of the Year in a near-unanimous vote, giving the Indiana Fever back-to-back winners after Aliyah Boston won the honour last season.
Days after being suspended by FIFA, Argentina goalkeeper Emiliano Martinez produced heroics in front of the watching Prince William as Aston Villa sealed another famous win against Bayern Munich.
The claim to Shohei Ohtani's potentially lucrative 50th home run ball grew more complicated this week, with a second fan filing a lawsuit asserting he had possession of the historic baseball.
Tesla is recalling more than 27,000 Cybertrucks because the rearview camera image may not activate immediately after shifting into reverse, the fifth recall for the vehicle since it went on sale late last year.
A Pickering, Ont., student going to college to be a mechanic is shocked the engine in his two-year-old car will not be repaired under warranty after the dealership claimed he had been 'over-revving' the engine.
A group of classic car enthusiasts donated hundreds of blankets to nursing homes in Nova Scotia.
Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.
From the beaches of Cannes to the bustling streets of New York City, a new film by a trio of Manitoba directors has toured the international film festival circuit to much pomp and circumstance.
A husband and wife have been on the road trip of a lifetime and have decided to stop in Saskatchewan for the winter.
The grave of a previously unknown Canadian soldier has been identified as a man from Hayfield, Man. who fought in the First World War.
A group of classic car enthusiasts donated hundreds of blankets to nursing homes in Nova Scotia.
Moving into the second week of October, the eastern half of Canada can expect some brisker fall air to break down from the north
What does New Westminster's təməsew̓txʷ Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.
The last living member of the legendary Vancouver Asahi baseball team, Kaye Kaminishi, died on Saturday, Sept. 28, surrounded by family. He was 102 years old.
New data from Greater Vancouver and the Fraser Valley shows a surge in supply and drop in demand in the region's historically hot real estate market.
NDP Leader David Eby is vowing to raise British Columbia's speculation and vacancy tax on empty homes if re-elected premier this month.
One day after a man was stabbed to death in East Vancouver, a 27-year-old woman has been charged with murder.
A Vancouver tenant is at war with his former landlord over what he calls an exorbitant charge for bent blinds.
A 21-year-old man who was charged with attempted murder in the shooting of a Toronto police officer this week was out on bail at the time of the alleged offence, court documents obtained by CTV News Toronto show.
Police forces in the Toronto area have stepped up their presence in Jewish and Muslim communities as the one-year anniversary of the deadly Oct. 7 terror attack on Israel inches closer.
A DoorDash driver who was caught on camera appearing to spit into an Ontario man’s drink has been removed from the platform, the food delivery company has confirmed.
Martha Hart, the widow of Calgary wrestler Owen Hart, is speaking out after the release of Netflix's 'Mr. McMahon' documentary series, which she says inaccurately portrays her husband's death as an accident.
Authorities say two Calgarians were arrested and charged in "a complex scheme" involving stolen vehicles.
An annual ceremony is bringing together the families and friends of missing and murdered Indigenous people in hopes of raising awareness about the issue.
The owner of a Gatineau, Que. café says it's 'silly' that Quebec's language watchdog is telling the business to write its Instagram posts in French.
The O-Train will be out of service all day on Saturday and for two additional hours on Sunday as part of work to integrate the Stage 2 East extension with the existing LRT line.
There was a decrease in the amount of waste heading to the City of Ottawa's landfill in the two months leading up to the city's new three-item garbage limit.
At least two people are dead and others are injured after a fire ripped through a century-old building near Montreal's City Hall, sources told Noovo Info.
Classes and campus activities at CEGEP de Valleyfield were cancelled Friday morning as a result of a police operation.
Public transport users who regularly use Fabre, d'Iberville and Saint-Michel stations on the Montreal metro's blue line will have to be patient, as the emergency closure of the three stations announced on Thursday evening could stretch out over 'a few days, or even a few weeks.'
Following the Alberta government’s recent announcement of capital funding to build charter and independent schools, the Investigative Journalism Foundation has found that several consultants with ties to the United Conservative Party (UCP) have been lobbying on behalf of charter schools and associated organizations over the past year.
Edmonton mayor, Amarjeet Sohi, discusses his Fair Compensation Project with Alberta Primetime host Michael Higgins.
An Edmonton hot tub repairman who was the subject of a previous CTV News Edmonton report has been charged with fraud.
A teen charged with the murder of another teen on Prince Edward Island last year has pleaded guilty to a lesser charge of manslaughter.
The federal Fisheries Department says it is concerned about a "pattern" of violence and threats toward its enforcement officers after two tense incidents off southwestern Nova Scotia last month.
A 31-year-old man is facing theft and break-in charges in connection to a vandalism incident at the Fredericton Public Library that caused tens of thousands of dollars of damages over the weekend.
The Opposition Tories introduced a motion to get the justice system to take another look at the case of Jordyn Reimer.
Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.
Winnipeg Comiccon will feature a pair of hobbits who helped bring the One Ring to Mount Doom.
RCMP say fraudsters are continuing to ask for gas money before selling fake gold jewelry to people around Saskatchewan.
Saskatchewan Party Leader Scott Moe says if re-elected, his government would introduce a Saskatchewan Home Renovation Tax Credit aimed at making renovations more affordable.
As pressure grows on the oil and gas sector to reduce its emissions, one Calgary-based company is banking on the potential to convert waste gas from oil wells into valuable electricity for nearby communities.
Waterloo Regional Police have laid charges after a car crashed into the side of a Kitchener home at 3:30 a.m.
A DoorDash driver who was caught on camera appearing to spit into an Ontario man’s drink has been removed from the platform, the food delivery company has confirmed.
Two serious crashes shut down Highway 401 early Friday morning in Puslinch, Ont.
Saskatoon police arrested a homeless person at the scene of an encampment underneath the University Bridge on Friday morning.
The mayor of Loon Lake is appealing to both provincial and federal government leaders for assistance in dealing with rising crime in the village, which has seen an increase in vandalism, theft, and property damage.
As pressure grows on the oil and gas sector to reduce its emissions, one Calgary-based company is banking on the potential to convert waste gas from oil wells into valuable electricity for nearby communities.
A northeastern Ontario jury has started deliberating in Canadian musician Jacob Hoggard's sexual assault trial, we can now tell you what they weren't allowed to hear.
A motorcyclist is left with serious, life-altering injuries after a crash on Highway 11 in northern Ontario on Wednesday morning.
Two more Elliot Lake teens have been charged in connection to the break-in at the local arena last week and are accused of causing more than $50,000 in damage.
A ceremony was held inside the Wolseley Barracks on Friday, honouring the family of Officer Cadet Brett Cameron who died by suicide at the Royal Military College in Kingston, Ont. in 2016.
According to police, officers responded to the 600 block of Tennent Avenue for a, "report of a possible stabbing" around 9 p.m. on Thursday.
A London, Ont. man, who pleaded guilty earlier this year in a harassment case, has been sentenced to two months in jail for criminal harassment of a Windsor, Ont. family.
The Ministry of Labour is investigating a workplace incident that claimed the lives of two people in Georgian Bluffs, south of Owen Sound.
A Midland woman is facing several charges after police say she bit an officer while being arrested for an alleged armed confrontation.
An Orillia man faces an additional criminal charge as part of an internet child exploitation investigation that included a search of the accused's residence in June and several items confiscated as evidence.
A London, Ont. man, who pleaded guilty earlier this year in a harassment case, has been sentenced to two months in jail for criminal harassment of a Windsor, Ont. family.
The Windsor Police Service (WPS) are looking for a witness to a collision between a pedestrian and vehicle in September.
Brian Masse, Windsor-West’s Member of Parliament (MP), stood before the House of Commons on Friday, criticizing the eased hazardous material restrictions at the Ambassador Bridge.
NDP Leader David Eby is vowing to raise British Columbia's speculation and vacancy tax on empty homes if re-elected premier this month.
Politicians are continuing to promote their promises across British Columbia as the provincial election campaign nears its midway point.
One person is dead after a floatplane carrying three people crashed Wednesday evening in a remote inlet on British Columbia's central coast.
Three young suspects have been arrested in connection with a swarming attack on a teenager in B.C.'s Okanagan last week – and authorities have asked the public to stop circulating disturbing videos of the incident.
A father in Kelowna is furious after his 13-year-old daughter was brutally beaten on Gyro Beach. He is calling for criminal charges in the devastating attack, which was caught on video by multiple bystanders.
The officer who shot and killed a forcible confinement suspect in Kamloops two years ago was justified in doing so, according to the Independent Investigations Office of B.C.
WestJet has changed its operations at the Lethbridge Airport, and it means there's now only a single daily flight from Lethbridge to Calgary, down from three flights a day, as offered previously.
Archie's Exotic Pet Rescue has been open about six years and, like many other animal rescues, it has seen a surge in surrenders.
It’s almost deadline day for Lethbridge residents interested in becoming members of one of the city’s boards, commissions and committees (BCCs).
A northeastern Ontario jury has started deliberating in Canadian musician Jacob Hoggard's sexual assault trial, we can now tell you what they weren't allowed to hear.
A suspect who accused Thunder Bay police of being responsible for his throat injury actually hurt himself when he swallowed a large amount of drugs.
An outfitter in Kenora, Ont., and two individuals have been fined a total of $9,500 for bear hunting offences, including abandoning a bear they shot and using it as bait to hunt another bear.
He may not have logged the fastest time or even gone the full distance, but residents of a Newfoundland town agree the goat who unexpectedly joined the local weekend half marathon was the event's undisputed champion.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
A soccer game in England on Tuesday night drove a spike in online traffic across the Atlantic to a website launched by the Newfoundland and Labrador government.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
