What US DoJ is investigating in Google’s ad business
According to a Reuters report, the Justice Department and a coalition of states will seek to prove that Google violated U.S. antitrust laws through its digital advertising businesses. Regulators accused the company of dominating the market for digital ad technology by integrating its tools for publishers and advertisers, thereby securing a “privileged position as the middleman.”
The Justice Department alleged that Google controls 91% of the market for ad servers, over 85% of the market for ad networks, and more than half of the ad exchange market.
Potential witnesses for the trial may include competitors such as Trade Desk and Comcast, as well as publishers like PubMatic. The case will also examine how Google’s advertising technology has impacted news organisations.
A study from Northwestern University published in November 2023 noted that one-third of U.S. newspapers have closed or been sold since 2005. Executives from News Corp, the Daily Mail, and Gannett, all of whom have also sued Google, could testify during the trial.
A victory for the states and the Justice Department could pave the way for them to request that US District Judge Leonie Brinkema order a breakup of Google’s business.
What Google said about the upcoming trial
Google has refuted these claims, arguing that it is not obligated to share its technological advantages with competitors and that its products are compatible with those from other companies.
The company highlighted that its market share is 30% or less when accounting for advertising on social media, streaming TV, and apps. Google also contends that the Justice Department’s focus on website ads overlooks the competitive landscape in these growing categories.
The trial will scrutinise Google’s perspective on its ad tech, with potential testimony from over two dozen current and former employees, including YouTube CEO Neal Mohan, a former Google advertising executive. The company has also emphasised its support for small businesses and publishers, some of whom it intends to call as witnesses.
Google even warned that a breakup could “slow innovation, increase advertising costs, and make it more difficult” for small businesses to grow.