Sep 09, 2024 15:00:00

The US Department of Justice's antitrust lawsuit against Google's advertising business is scheduled to begin on September 9, 2024

The US Department of Justice

has sued Google for antitrust violations , and on August 5, 2024, the courtruled that Google's actions constituted a monopoly on general search services and general search text ads. A trial is scheduled to begin on September 9, 2024, to argue that Google illegally monopolized the market for advertising technology.

Google second antitrust trial advertising model
https://www.cnbc.com/2024/09/06/google-second-antitrust-trial-advertising-model.html

Google and DOJ return for round two of their antitrust fight — this time about ads - The Verge

https://www.theverge.com/24236989/google-doj-ad-tech-antitrust-trial-preview

CMA objects to Google's ad tech practices in bid to help UK advertisers and publishers - GOV.UK
https://www.gov.uk/government/news/cma-objects-to-googles-ad-tech-practices-in-bid-to-help-uk-advertisers-and-publishers

British competition regulator objects to Google's ad tech practices
https://www.cnbc.com/2024/09/06/british-competition-regulator-objects-to-googles-ad-tech-practices.html

The Justice Department alleges that Google 'illegally monopolized the market for ad tech tools across its ecosystem,' including its Ad Exchange , a digital marketplace that sits between the demand side of ad networks buying space on websites and the supply side, like publisher ad servers, selling ad inventory.

According to the Department of Justice , Google is operating its ad exchange illegally and preventing its competitors from competing fairly. It also claims that 'for more than 15 years, we have been conducting a campaign to control and tax digital advertising transactions,' and that 'Google's control over all aspects of the marketplace may allow it to engage in exclusionary behavior, such as manipulating ad auctions to its advantage or imposing unfair conditions on access to tools.'

On the other hand, Google criticized the government's attempt to punish Google, saying, 'Ad Exchange is an efficient and valuable tool that benefits publishers and advertisers,' and 'The government's view of the market does not reflect reality and ignores the intense competition we face and the innovation we have created to make our tools attractive to our customers.'

The trial between the Department of Justice and Google is scheduled to begin on September 9, 2024 local time and is expected to take several weeks to conclude. A number of people from the advertising and publishing industries are expected to testify at the trial, including YouTube CEO Neal Mohan, The Trade Desk's Chief Revenue Officer Jed Dederick, and BuzzFeed CEO Ken Blom.

The main issue in the trial will be whether Google is illegally monopolizing the ad technology market, and according to CNBC, if the Justice Department wins, Google could be inundated with lawsuits from advertisers seeking financial compensation. An analyst at research firm

Bernstein said, 'If Google loses, the amount it has to pay in these lawsuits could reach as much as $100 billion.'

On September 6, 2024, the UK Competition and Markets Authority (CMA) claimed that Google had 'harmed competition by using its dominance in online display advertising to favor its own advertising technology services.' According to the CMA, the vast majority of thousands of publishers and advertisers in the UK, spending £1.8 billion (about 337 billion yen) annually on advertising as of 2019, use Google's technology to bid and sell space to display ads.

The CMA criticized Google's actions, saying, 'Google's actions are detrimental to competitors in the advertising technology market and have a negative impact on fair market competition.' Juliet Ensar, interim executive director of the CMA's enforcement department, said, 'Many companies are able to keep digital content free or cheap by generating revenue through online advertising. These website and app ads reach millions of users across the UK and help buy and sell goods and services. That's why it's so important that publishers and advertisers have effective competition and fair trading in the buying and selling of digital advertising space.'

Dan Tyler, vice president of Google Ads, criticized the ruling, saying, 'Our advertising technology tools help websites and apps get the benefits they deserve, and enable businesses of all sizes to reach new users effectively. We are committed to creating value for our partners - publishers and advertisers - in this competitive industry. The CMA's findings are the result of a flawed interpretation.'