Google’s emails presented as key evidence in antitrust trial
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The U.S. government’s antitrust suit against Google’s (NASDAQ:GOOG) (NASDAQ:GOOGL) advertising business features the company’s internal emails as what prosecutors describe as key evidence that executives were aware of its dominance in the online ad market, The Wall Street Journal reported Sunday.
Among the evidence that the Justice Department presented at trial in the past two weeks was a 2010 email by YouTube Chief Executive Neal Mohan, who previously ran Google’s display-ads business. Back then, Google was facing greater competition from ad-tech startups.
“One way to make sure we don’t get further behind in the market is picking up the one with the most traction and parking it somewhere,” Mohan wrote to Google colleagues.
Google acquired ad-tech company AdMeld for $400 million in 2011 and shut it down two years later after integrating the startup’s technology into Google’s ad exchange, known as AdX. Prosecutors argued the AdMeld deal was part of a broader strategy to eliminate rivals and lock customers into terms that required them to pay for a software tool to gain access to another one.
On the witness stand, Mohan denied that he suggested buying AdMeld to get rid of a competitor. He said the acquisition was better for customers because it filled a gap in its product suite.
Prosecutors also questioned former Google executives including Jonathan Bellack, Chris LaSala, Eisar Lipkovitz about their emails, the Journal reported.
Other witnesses included Google customers such as former News Corp executive Stephanie Layser. She testified that she felt she didn’t have any choice except to use Google’s platform because switching ad servers would have cost millions in ad revenue.
Google’s legal team in the civil suit will present its defense in the coming week.
U.S. District Judge Leonie Brinkema in Virginia will decide the case. A ruling against Google may result in ordering the company to sell parts of its ad-tech business, whose value is estimated at $100 billion or more, the Journal reported.