Google faces US federal court trial over ‘harmful conduct’ allegations. Can tech giant avoid a business shake-up?

US-based big tech company Google is set to face a federal court trial in Alexandria, Virginia, starting from Monday, 22 September, over allegations of using its monopolistic power in the digital advertising business, news agency AP reported.

This trial is Google's second legal citation after an earlier case this month, when the company was under scrutiny by the US Justice Department over an alleged illegal monopoly in the online search system. However, the case turned out to be in favour of the tech company after a trial.

US District Court of Virginia Judge Leonie M. Brinkema will hear the arguments in the recent case and then eventually rule on how to fix Google's monopoly over some online advertising technology.

The US Justice Department, along with Google, will spend the next two weeks in the court, presenting their arguments and evidence in a ‘remedy trial’, which will seek to give a verdict on how to restore fair market conditions in the technology industry.

According to the agency report, Judge Brinkema has not fixed a timetable for making that decision; however, it is unlikely to be made before the end of 2025 due to the additional legal briefs and courtroom arguments that are expected to extend into November 2025.

What does Justice Department want?

According to a New York Times report, the US Justice Department seeks to force Google to sell its technology, which the company uses to connect buyers and sellers of advertisement space, among other potential actions.

The report also highlighted that Google has instead proposed changing its ad auction bidding system in ways that are likely to benefit publishers using the platform.

The US Justice Department aims to break up the company's business in the most effective and quickest way to undercut a monopoly that has been reportedly stifling competition and innovation for years.

What is the case against Google?

The case filed by the US Justice Department in 2023 alleged that Google has spent the last 17 years trying to boost its dominant digital advertising business.

Over the years, the business has generated $305 billion in revenue, which Google ad services has contributed to its parent company Alphabet's accounts. According to the agency report, Google's digital advertising sales provide the lifeblood that keeps thousands of websites alive.

Google reiterated that, irrespective of the Judge's ruling, the company will appeal its earlier decision labelling the ad network as a monopoly. However, the news report suggests that the appeal cannot be filed until the end of the ‘remedy trial’.

Earlier this month, US District Court of Columbia Judge Amit P. Mehta, in a monopoly allegations case against Google, ruled that the company could essentially continue operating as is, but they have to share its search results with rivals and restrict payments that ensure its search engine gets prime placement in web browsers and on smartphones.

Legal experts told the New York Times that Judge Brinkema's decision can disrupt $3.1 trillion in Google's business operations and that the case aligns with the previous tough antitrust decisions, which could make it easier for the judge to take an aggressive action.