Google's emails have become key evidence in the antitrust trial
The U.S. government has filed an antitrust lawsuit against Google's advertising business, with prosecutors using internal emails as key evidence to prove that executives were aware of its dominant position in the online advertising market. During the trial, an email from YouTube CEO Mohan in 2010 was cited, discussing how to maintain market competitiveness. Prosecutors claimed that Google's acquisition of AdMeld was a strategy to eliminate competitors, while Mohan denied this claim. The ruling of the case could lead to Google selling part of its advertising technology business, valued at over $100 billion
According to the financial news app Zhitong Finance, the US government has filed an antitrust lawsuit against Google (GOOGL.US) advertising business. Prosecutors are using internal emails from Google as key evidence to prove that the company's executives were aware of Google's dominant position in the online advertising market.
During the past two weeks of the trial, evidence submitted by the Department of Justice includes an email from Neal Mohan, Chief Executive Officer of YouTube in 2010. Mohan was previously in charge of Google's display advertising business. At that time, Google was facing increased competition from advertising technology startups.
In the email to Google colleagues, Mohan wrote, "One way to ensure we don't fall further behind in the market is to pick the most attractive product and park it somewhere."
In 2011, Google acquired advertising technology company AdMeld for $400 million and integrated the technology of this startup into Google's AdX advertising exchange platform two years later, before eventually shutting down the company. Prosecutors claim that the AdMeld acquisition was part of a broader strategy to eliminate competitors and lock customers into terms that required them to pay for software tools to access another software tool.
On the witness stand, Mohan denied that he suggested acquiring AdMeld to eliminate competitors. He stated that the acquisition was more beneficial for customers as it filled a gap in the product suite.
Reportedly, prosecutors also questioned the email content of former Google executives including Jonathan Bellack, Chris LaSala, and Issar Lipkovitz. Other witnesses included former News Corp executive Stephanie Layser and Google customer, who testified that she felt she had no choice but to use the Google platform as switching ad servers would cost millions of dollars in ad revenue.
Google's legal team for the civil lawsuit will present their defense next week. Judge Leonie Brinkema of the US District Court in Virginia will make a ruling on the case. An unfavorable ruling against Google could lead to the company selling part of its advertising technology business, valued at an estimated $100 billion or more