DOJ Says Google Controls 91% Of Ad Market; Google Says 10% via @sejournal, @MattGSouthern

The Department of Justice (DOJ) and Google gave their last arguments connected Monday successful an antitrust case regarding Google’s integer advertizing technology.

U.S. District Judge Leonie Brinkema is expected to marque a determination by the extremity of the year.

DOJ’s Argument

The DOJ claims that Google has built and kept a monopoly successful open-web show advertizing done products similar DoubleClick, Google Ads, and AdExchange.

They accidental Google holds astir 91% of the marketplace for steadfast advertisement servers and 87% for advertiser advertisement networks.

The lawsuit against Google is supported by a 2009 email from erstwhile Google enforcement David Rosenblatt. He mentioned the company’s extremity to “do to show what Google did to search.”

Prosecutors reason that this shows Google’s program to power the integer advertizing market.

Another important portion of the proceedings is Google deleting internal chat messages. Google claims astir of these were casual chats but admitted that immoderate included concern discussions.

Google’s Response

Google is challenging the DOJ’s explanation of the advertizing market.

Google believes integer advertizing has three abstracted markets, portion the DOJ sees it arsenic one two-sided market.

Google argues it competes with respective platforms, including:

• Social media platforms similar Meta and TikTok
• Streaming services
• Mobile app advertising

When considering these competitors, Google claims its marketplace stock is lone astir 10%. The institution besides states that this stock is shrinking owed to accrued competition.

Additionally, Google points retired that it has spent billions processing ad-matching technology. It argues that it shouldn’t person to stock this competitory vantage with different companies.

Potential Consequences

If Judge Brinkema finds Google blameworthy of unfair concern practices, the lawsuit volition determination to the adjacent signifier focused connected solutions.

The DOJ and the states progressive whitethorn effort to marque Google merchantability immoderate parts of its advertisement tech business, earning tens of billions of dollars yearly.

This lawsuit is happening alongside different antitrust lawsuit targeting Google’s hunt business. In that case, Google mightiness besides person to merchantability its Chrome browser and look different penalties.

Publisher & Advertiser Impact

The lawsuit highlights tensions betwixt Google and its customers:

• Publishers accidental they indispensable usage Google’s afloat advertisement stack to gain more.
• Advertisers consciousness they person fewer options to scope ample audiences.
• Small businesses interest astir rising advertizing costs.

The authorities claims Google’s dominance prevents just gross for publishers, stating the institution takes up to 36% successful commission.

Google argues its “take rate” is now 31% and falling and is little than competitors’.

Looking Ahead

Judge Brinkema is expected to contented a written ruling connected the lawsuit by the extremity of the year.

The result could acceptable important precedents for however antitrust instrumentality applies to integer markets.

Featured Image: Ken Cook/Shutterstock

SEJ STAFF Matt G. Southern Senior News Writer astatine Search Engine Journal

Matt G. Southern, Senior News Writer, has been with Search Engine Journal since 2013. With a bachelor’s grade successful communications, ...