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Alphabet Faces Bench Trial in Antitrust Case After $2.3 Million Settlement
In a significant development, Alphabet Inc. is set to face a bench trial instead of a jury trial in the Department of Justice's (DOJ) antitrust case against the company. This decision follows Alphabet's payment of $2.3 million to the federal government, which the tech giant provided as compensation for alleged damages related to monopolization in the advertising technology market.
Dispute Over Jury Trial
Judge Leonie Brinkema determined that the substantial payment by Alphabet addressed any damages claimed by eight federal government agencies due to Google's conduct. Consequently, the judge ruled that a jury trial is unnecessary, stating that the trial, expected to commence in September, will instead be overseen by the court.
"I am satisfied that the cashier’s check satisfies any damages claim," Brinkema remarked after a heated session. "A fair reading of the expert reports does not support a higher amount."
Government's Jury Trial Request
The antitrust suit, brought against Google in 2023, accused the company of monopolizing the technology used for online advertisement transactions. The government initially sought a jury trial, alleging it had been overcharged for ads purchased online from 2019 to 2023. This is atypical, as most antitrust cases are resolved by judge, not jury.
Google's advertising technology products charge a 20% fee, which the government claimed would be lower if not for the company's alleged illegal monopolization. Experts estimated that this monopolistic behavior caused government agencies to overpay by $750,000.
Settlement and Trial
Last month, Google issued a cashier’s check for $2.3 million to the Justice Department, covering triple the estimated damages plus interest— the maximum recoverable amount at trial. Following this, Google requested the court to dismiss the government's jury demand. The DOJ contended that the $2.3 million was insufficient and argued for higher compensation.
Broader Legal Context
This case is one among several antitrust lawsuits Google currently faces. In another prominent case, the DOJ accused Google of monopolizing the search market. That trial concluded last year, with a ruling still pending. Meanwhile, a California jury concluded in December that Google illegally monopolized the Android app distribution market, and the judge has yet to decide on the remedy.
Commenting on the ad tech case, Google spokesperson Peter Schottenfels criticized the DOJ's claims. "The Justice Department’s ‘contrived damages claim has disintegrated," Schottenfels stated. "This case is a meritless attempt to pick winners and losers in a highly competitive industry that has contributed to overwhelming economic growth for businesses of all sizes. We look forward to making our case in court."
Ongoing Debates in Tech Regulation
The outcomes of these cases will likely influence the broader regulatory environment for tech giants, spotlighting ongoing debates about market dominance and competition in the tech industry.
