Google Advertising Technology on the Spot in New Antitrust Trial
Search giant Google is facing trial in another antitrust case scheduled for Monday this coming week. In the upcoming Google antitrust trial, the US Department of Justice (DoJ) will be taking on the tech giant’s ad monetization system that it says causes harm to news publishers.
According to Reuters, the US antitrust trial is part of the US government’s efforts to rein in large technology companies through antitrust laws. The case comes barely a month after the DoJ secured a groundbreaking ruling after a federal Judge found Google guilty of running an illegal monopoly.
Google’s Ad Technology
Initially, the US antitrust trial on Google focused on the company’s universal search engine. In the upcoming trial, Google’s digital ad business will be targeted. The focus will be on Google’s advertising tools, specifically the technology it uses to connect websites, publishers, and advertisers.
In the trial, the DoJ will be seeking to demonstrate that Google broke the law in its digital ad business.
“Google is far and away the largest seller of advertising on earth. They touch every part of the industry, if not directly, then indirectly. Everyone has an interest in Google one way or another,” Financial Analyst and Advertising Consultant, Brian Wieser said.
A win for DoJ in the trial will set the stage for the state to ask the District Judge to order Google’s breakup. Last year, advertising tools earned the search giant over 75% of the $307.4 billion revenue it generated through advertising.
Market Dominance
US regulators have accused Google of market dominance due to the technology it uses to power website ads.
The DoJ alleges that the search giant has 91% control of the ad server market where publishers sell ad space. The regulator also alleges that Google controls 50% of the ad exchange market and 85% of the ad networks marketers which advertisers rely on to place ads.
But Google says it only controls 30% or less of these markets when advertising on streaming TV, apps, and social media is included. The company argues that DoJ’s focus on web ads obscures the stiff competition it faces as other categories grow.
The tech giant has also been accused of lumping advertisers and publishers together, placing itself in a privileged middleman position. Last week, review website Yelp sued Google for monopolizing local search. Yelp accused Google of prioritizing its reviews over those of competitors in search rankings.
Google argues that it’s not required to share its tech advantage with competitors. It also says that its tech products are interoperable with those that its competitors use.
Impact on News Outlets
The upcoming Google antitrust trial will also focus on the impact of Google’s ad technology on news companies.
Speaking at an event back in June, DoJ’s Antitrust Chief, Jonathan Kanter said, “Journalism is under threat in large part due to consolidation in the advertising market.”
The DoJ has lined up several news outlets to testify in the trial. They include executives from the Daily Mail, News Corp, and Gannett.
Google plans to call some of the publishers and small businesses it focuses on to testify in the trial. The company says a breakup will increase advertising fees, slow innovation, and make it difficult for small businesses to grow.
