Google Faces Antitrust Trial Over Ad Practices: DOJ Alleges Harm to Journalism and Market Control
September 5, 2024Allegations in the trial suggest that Google's advertising monetization system harms news publishers and violates U.S. antitrust laws.
The trial will also explore the impact of advertising technology on journalism, noting that one-third of U.S. newspapers have closed or been sold since 2005, according to a Northwestern University study.
Justice Department antitrust chief Jonathan Kanter has linked the decline of journalism to consolidation in the advertising market, emphasizing the stakes of this case.
Next week, Alphabet's Google will face a trial in Alexandria, Virginia, stemming from an antitrust case initiated by the U.S. Department of Justice regarding its advertising practices.
The trial will scrutinize Google's advertising technology, which connects website publishers with advertisers and accounted for over 75% of its $307.4 billion revenue last year.
The DOJ and 17 states allege that Google has used acquisitions, such as DoubleClick, to secure control over the $300 billion adtech industry.
Following its acquisition, the DoubleClick assets evolved into Google Ad Manager, which the DOJ claims holds a 90% share of the U.S. publisher ad server market.
In its defense, Google argues that its market share in ad technology is actually around 30% or less when including other advertising channels like social media.
Google plans to call small businesses and publishers as witnesses, arguing that a breakup of the company could stifle innovation and increase costs for small businesses.
Potential witnesses in the trial include competitors like Trade Desk and Comcast, as well as publishers such as PubMatic, underscoring the case's significance in the advertising tech landscape.
Analysts from Wedbush indicated that if Google were required to divest its Ad Manager business, the financial impact on its overall operations would be minimal.
Despite the allegations, Google has denied wrongdoing, asserting that it is not obligated to share its technological advantages and that its products are compatible with those of competitors.
Summary based on 8 sources
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Sources
Adweek • Aug 26, 2024
Google Sought to Pay Agencies Hundreds of Millions to Sway Media BuysSeeking Alpha • Sep 4, 2024
Google expected to appear next week for antitrust trial related to ad business practices