Google’s antitrust trial nears verdict

A court decision could force Google to divest parts of its advertising business if found guilty.
An online education company has filed a lawsuit against Google, claiming its AI-generated search overviews are damaging digital publishing. Chegg alleges the technology reduces demand for original content by keeping users on Google's platform, ultimately eroding financial incentives for publishers. The company warns this could lead to a weaker online information ecosystem. Chegg, which provides textbook rentals and homework help, says Google's AI features have contributed to a drop in traffic and subscribers. As a result, the company is considering a sale or a move to go private. Chegg’s CEO Nathan Schultz argues Google is profiting from the company's content without proper compensation, threatening the future of quality educational resources. A Google spokesperson rejected the claims, insisting AI overviews enhance search and create more opportunities for content discovery. The company maintains that search traffic remains strong, with billions of clicks sent to websites daily. However, Chegg argues that Google's dominance in online search allows it to pressure publishers into providing data for AI summaries, leading to fewer visitors to original sites. The education company argues AI-generated overviews keep users on Google’s platform, reducing financial incentives for content creators.

A pivotal antitrust case involving Google’s dominance in online advertising has reached its conclusion in a Virginia federal court. The US Department of Justice (DOJ) alleges that Alphabet’s Google unfairly monopolised key markets, including ad servers and advertiser networks, as well as attempting to dominate ad exchanges. Closing arguments were presented after a 15-day trial.

DOJ lawyers accused Google of manipulating the ad market for its advantage. They characterised the company as a ‘once, twice, three times a monopolist’ and likened the case to a tale of conflicting narratives, urging the judge to side with their evidence. Publishers testified about being unable to switch from Google’s services due to the company’s vast ad demand, highlighting the significant revenue at stake.

Google’s defence argued that its business practices align with antitrust laws and that the DOJ failed to meet the burden of proof. Company lawyers claimed the case misrepresented a competitive ad market and ignored Google’s legitimate strategies. Google contends the government focused narrowly on certain market aspects rather than acknowledging broader industry competition.

A decision could lead to major structural changes for Google’s advertising business. Prosecutors want Google to divest its Ad Manager platform, which includes its publisher ad server and ad exchange. The company recently offered to sell its ad exchange to resolve a similar EU antitrust inquiry, though European publishers rejected the proposal as inadequate.