Google's lucrative ad business could be on the DOJ's chopping block for anti-competitive business practices: "No one is forced to use our advertising technologies, they use them because they're effective"

What you need to know

After being deemed a monopolist in search, Google is back in the corridors fighting a new antitrust case — this time targeting its dominance in digital advertising.
The US DOJ and 17 states have filed an antitrust case against Google, citing anticompetitive business practices and unlawful behavior.
Experts and analysts predict that the Justice Department may face issues establishing a legal ground for the case while referring to ad business as “complex.”

As a researcher with over two decades of experience in tech and competition law, I find myself closely following the unfolding events surrounding Google’s antitrust cases. Having witnessed the rise and fall of numerous industry giants, I can say that this is not an unusual situation for a company as dominant as Google. However, the complexity of digital advertising makes it an intriguing case to watch.

It’s been over a month since Google’s search engine was deemed a monopoly in an antitrust ruling. And now, the tech giant is back in court fighting a separate antitrust case that could potentially change its entire advertising business.

17 states, along with the U.S Department of Justice (DOJ), assert that Google has exploited its market power to establish a monopoly in the digital advertising sector. This, they argue, has resulted in less favorable conditions for competitors and potential harm to online publishers, advertisers, and American consumers. The DOJ further emphasizes that Google’s actions have caused significant damage in this area.

The antitrust trial against Google for alleged monopolistic practices in the advertising sector is set to commence on Monday. The U.S Department of Justice aims to provide evidence supporting Google’s ‘unfair’ market dominance in this field. It’s worth noting that Google earned around $200 billion from ad revenue over a certain period.

Google attributes the key factor behind its remarkable success in the field to the efficacy of its services, stating that users voluntarily employ their advertising technologies because they work well.

Google has bigger fish to fry beyond the monopolist antitrust ruling

Although it’s too soon to predict the final verdict, the UK Competition and Markets Authority (CMA) alleges that Google is misusing its market power to gain an unfair advantage over its rivals. The regulatory body alleges that Google employs anticompetitive strategies and illegal actions to strengthen its position in the advertising industry.

In conversation with BBC, a professor specializing in antitrust law at Vanderbilt University Law School expressed doubts about the feasibility of building a solid legal foundation for their case. The intricate nature of the advertising industry, according to the professor, could pose significant difficulties for the government in making a straightforward and convincing monopolization argument.

In response to the antitrust case concerning its ad business, a Google representative expressed that they believe there is a misunderstanding of the advertising sector. Previously, Google has emphasized the rapid expansion of their ad business, offering numerous chances for rival companies, using examples such as Apple, Amazon, and TikTok’s recent achievements in this field.

Meanwhile, regulatory scrutiny intensifies against Google for its alleged anti-competitive activities, the tech giant encounters steeper hurdles from up-and-coming rivals in the realm of search, notably OpenAI’s temporary search engine prototype, dubbed SearchGPT.

2024-09-09 14:09

Google’s lucrative ad business could be on the DOJ’s chopping block for anti-competitive business practices: “No one is forced to use our advertising technologies, they use them because they’re effective”

What you need to know

Google has bigger fish to fry beyond the monopolist antitrust ruling

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