A month after a judge ruled Google’s search engine to be an illegal monopoly, the company now faces another antitrust lawsuit targeting its advertising technology, with the potential to dismantle the tech giant. The Justice Department, along with a group of states, and Google presented opening arguments to a federal judge who will determine if Google holds a monopoly in online ad tech.

Regulators claim Google built and maintains a monopoly over tools that connect advertisers with online publishers. They argue Google’s control of both sides of these transactions allows it to take up to 36% of the revenue from ad sales. Additionally, they accuse Google of dominating the ad exchange market, which links buyers and sellers of ad space.

The Justice Department’s lawyer, Julia Tarver Wood, described the situation as a “trifecta of monopolies.”

Google, however, argues that the case relies on outdated views of the internet, pointing out that modern advertisers often use platforms like TikTok or streaming services such as Peacock. Google’s attorney, Karen Dunn, compared the government’s case to an “internet time capsule” filled with relics like Blackberries, iPods, and Blockbuster cards.

Dunn cautioned that Supreme Court precedents advise against hasty judicial intervention in rapidly evolving technologies, highlighting the risk of errors or unintended consequences. She also argued that penalizing Google wouldn’t benefit small businesses but would instead allow other tech giants like Amazon, Microsoft, and TikTok to dominate the market.

Google’s financial reports show a decline in revenue for its Google Networks division, which includes services such as AdSense and Google Ad Manager, from $31.7 billion in 2021 to $31.3 billion in 2023.

The antitrust trial, which started in Alexandria, Virginia, centers on allegations that Google holds a monopoly in ad technology. Initially slated for a jury trial, Google paid over $2 million to the federal government, removing the only claim that required a jury, thus securing a bench trial. U.S. District Judge Leonie Brinkema will now preside over the case.

This trial follows a major loss for Google, as a judge declared its search engine a monopoly. Additionally, in a separate case, a judge ruled Google’s Android app store was also monopolistic.

Peter Cohan, a management professor at Babson College, noted that this case could be particularly damaging for Google, as it may result in the company being forced to sell parts of its ad tech business.

The government’s witnesses will include executives from news publishers, such as The New York Times Co., who argue Google’s practices have significantly harmed their revenue. Gannett Co. executive Tim Wolfe testified that his company relies on Google despite high fees, as it brings access to a large pool of advertisers.

Google denies overcharging and defends its integrated ad technology as improving speed and security. It also claims the government is focusing on outdated forms of advertising, ignoring the shift to mobile apps and social media ads. The trial is expected to last several weeks.