Google's Antitrust Trial: A Turning Point for Advertising Tech and Media
Advertising Tech's Pivotal Moment
Google executives and lawyers are headed to the Eastern District of Virginia Courthouse on Monday to face a landmark antitrust trial that could result in the breakup of its business. That outcome would be a boon for Google's adtech rivals but wouldn't necessarily provide an instant panacea for the publishers and advertisers that have come to depend on its services.
The Allegations Against Google
- The case, brought by the US Department of Justice and 17 state attorneys general, alleges that Google used acquisitions and anticompetitive ad auction tactics to build an illegal monopoly of the digital ad market.
- The trial is focused on the open web display ad market and the tools that power the ad auctions that happen in the milliseconds it takes for a webpage to load.
- Google owns an ad server that publishers use to manage their ad inventory, buying tools that advertisers use to purchase ads, and an ad exchange that connects the two.
- It owns the most popular of all three technologies, which the DOJ alleges helped the company impede rivals, inflate advertising costs, and reduce revenue for publishers.
What's At Stake?
The trial is set to last multiple weeks, and Google will likely appeal if the judge doesn't rule in its favor. That means it could be months before the real ramifications of the case are known. Still, the case is being closely watched by all members of the online ad ecosystem, which is expected to reach some $691 billion in spending this year. The DOJ and the states are seeking a breakup of Google's adtech business. Such a move would not only transform the online advertising landscape.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.