Mixed Expectations on Google Ad Tech Trial Outcome as Hearing Closes
Google’s antitrust trial on its advertising technology is coming to a close. As the world awaits the Google ad tech trial outcome, experts say that the risk of losing the case is relatively low.
According to Reuters, the search engine giant rested its case on September 27. Google will present its closing arguments on November 25 with the ruling expected within months.
Ad Technology Trial
Google’s ad tech antitrust case commenced on September 9, about a month after a US judge ruled that the tech giant is an illegal monopoly. Google said it would appeal this ruling even as the US Department of Justice (DoJ) prepares to propose legal remedies in court in the coming months.
The DoJ took on the tech giant’s ad monetization system in the ad tech trial. The justice department argued that the system harms advertisers and news publishers. Google’s ad technology trial forced the tech company to justify competitiveness in the advertising space and demonstrate to the court that its technology is not an illegal competition.
Last week, Google sought to counter DoJ’s allegations, arguing that its technologies provide publishers and advertisers a safe ecosystem with the tools they need to transact in a highly competitive digital advertising environment.
Business Implications
Analysts say that Google’s adtech trial may not be as heavy as the search case that led to a federal judge terming the search engine giant an illegal monopoly. This means the impact of the ad tech trial on the business could be minimal.
“The search case is the one that has the meat in terms of how much it could affect the business. This case is more headline,” Wedbush Analyst, Scott Devitt said.
DoJ’s case focused more on Google Network. This is the business wing that manages Google’s ad action that advertisers use to buy digital ad space. Google acknowledged financial interest in its advertising business.
“Google is never going to tell this court that it is not a big company and that these investments and innovations have not been in its financial interest. They have been. We are one big company among many others, intensely competing on a millisecond-by-millisecond basis for every single ad impression,” Google’s Lead Lawyer Karen Dunn said.
Google’s advertising business accounted for over 75% of the company’s $307 billion total revenue in 2023.
Damaging Testimony
Although some analysts think that the ad tech case could have minimal impact on Google’s business, others feel the Google trial could be a win or lose.
“I think the DOJ has the edge and a finding of liability is more likely than not,” Bloomberg Intelligence Analyst, Justin Teresi said.
The court heard testimonies that could push the outcome in DoJ’s favor. For instance, the court heard how Google’s former president of display advertising, David Rosenblatt had told employees back in 2009 that the company’s goal was to crush rival ad networks.
“We’ll be able to crush the other networks and that’s our goal. Google has created what’s comparable to the NYSE or London Stock Exchange; in other words, we’ll do to display what Google did to search,” Rosenblatt said.
During questioning by the DoJ, Scott Sheffer, Google’s VP for Global Partnerships admitted that AdX and AdSense platforms do not allow publishers and advertisers the like when publishers use Google’s ad server.
Google maintained that the tech giant integrates products to reduce fraud and ad spam and fraud. The company argued that opening its tools to rivals could make it easy for customers to circumvent the system and stifle innovation. The company also said that US laws protect its right to decide whether to make its advertising technology work for others.
