In the early days of the Google ad tech antitrust trial, the main focus appears to be the role of Google Ad Manager in the company’s alleged monopoly.
The US Department of Justice is working to prove that this platform is at the center of Google’s control over online ads. Google Ad Manager is a tool that helps businesses buy and sell ads. It became part of Google after the company bought DoubleClick and AdX in 2008 for $3 billion.
The platform connects Google’s ad servers, which show ads on websites, with its ad exchanges, where ads are bought and sold. This setup forces many website owners to stick with Google, even if it means paying higher fees. They feel they can’t switch to another service because Google’s system is so widely used, according to the case.
Google Ad Manager is used by 90 percent of publishers
The Department of Justice (DOJ) claims that Google Ad Manager is used by 90 percent of publishers who rely on tech tools to sell ads online. Moreover, this shows Google’s strong control over the ad market, says AdAge.
DOJ attorney Julia Tarver Wood, in her opening statement, said Google used acquisitions to change the rules of ad auctions. Moreover, this allowed the company to boost its profits and make it harder for competitors to challenge Google’s dominance.
Eight senators sent a letter to the FTC urging an investigation into the antitrust implications of AI-generated content summaries by companies like Google. They argue that these summaries take content from publishers without permission, reducing traffic and revenue for original… pic.twitter.com/R3nZ7KQECL
— Shelly Palmer (@shellypalmer) September 12, 2024
The DOJ believes that Google holds power in three key areas: publisher ad servers, advertiser ad networks, and the ad exchanges that connect them, as reported by Reuters.
Google disputes the DOJ’s claims about its control over ad tech, arguing that the market definitions used are too limited. The company also highlighted that the Federal Trade Commission (FTC) thoroughly reviewed and approved its DoubleClick merger in 2007.
During that period, the FTC examined the deal amid widespread public debate on its potential impact on competition. After looking into various concerns, the FTC concluded that the merger was not likely to harm competition in any significant way.
District judge may order Google to sell ad tech empire
In its complaint, the DOJ argued that Google’s purchase of DoubleClick gave the company a powerful advantage in the tools publishers use to sell ads. This move, the DOJ claims, worked alongside Google Ads and paved the way for Google’s later actions to limit competition in the ad tech industry.
To address this, the DOJ is asking the court to make Google separate Google Ad Manager from the company. This could also include products like Google’s Display and Video 360 (DV360) platform. Another possible outcome is that U.S. District Judge Leonie Brinkema could order Google to sell off its entire ad tech business.
