What the Google Test Means for Ad Tech

With the “trial of the century” approaching, what impact could the Google v. U.S. Department of Justice case have on the ad tech industry?

Google has faced increasing scrutiny in recent years over alleged anti-competitive practices, and now that’s coming to a head as the “biggest event of the year” puts Google vs. the United States in the spotlight. So what could the implications be for the industry?

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According to Mat Broughton of ExchangeWire, “At its heart, the DOJ’s case alleges that Google, through a series of acquisitions and subsequent manipulative, preference-based actions, forced as many transactions as possible through its own ad technology stack, to the detriment of entities throughout the digital advertising supply chain.”

The accusations against Google have sparked debate among industry experts, with some predicting they will have a major impact on online advertising.

Google’s Potential Breakup

The allegations against Google have sparked debate among industry professionals, with some predicting they will have a major impact on the online advertising landscape. On August 5, 2024, U.S. District Judge Amit Mehta ruled in a separate case involving Google’s search business that the company acted unlawfully to maintain a monopoly on search and related advertising. In his ruling, Mehta wrote, “After careful consideration and consideration of the witness testimony and evidence, the court concludes that Google is a monopoly and has acted as a monopoly to maintain its monopoly.”

One possible sanction the U.S. government is considering after the ruling is a breakup of the tech giant, which could have significant ramifications for the advertising industry. A potential Google breakup is a popular topic in the marketing industry, with comparisons to Microsoft’s previous antitrust battles. The outcome of the trial could lead to concessions from Google or an agreement with antitrust regulators.

The latest case will surely see even more efforts to settle the score if it too turns out unfavorably for Google.

Recent events

In a surprising turn of events, the Justice Department has accused Google of deleting news related to an antitrust lawsuit involving ad tech, potentially favoring the Justice Department in the case. Judge Brinkema is considering a motion for an adverse inference, adding another layer of complexity to the case.

On August 19, the Justice Department filed its proposed ruling in the case, alleging that Google had illegally maintained a monopoly on open online advertising, in each of the publisher ad server markets, ad exchanges, and advertiser ad networks. Google’s response was largely in line with expectations, arguing that its actions were in fact pro-competitive and that competition in the ad technology landscape is healthy.

Yelp recently filed an antitrust lawsuit against Google, accusing the company of maintaining a monopoly on local search services by favoring its own industry over its competitors. The move underscores the ongoing battle between tech giants and smaller players in the digital ecosystem. Google has denied the claims, but the legal battle is far from over.

What does this mean for the industry?

The upcoming antitrust trial against Google marks a watershed moment in the history of digital advertising and will have serious consequences for all parties.

“If the case goes against Google, there will be celebrations across the industry. As the ecosystem opens up, independent ad tech will benefit greatly as paths that were previously blocked start to open up again.

One segment of ad tech that could see a reboot is ad servers, a sector that was nearly wiped out by GAM could become desirable again if Google’s ad tech stack is split.

Ciaran O’Kane, Chief Security Officer, ExchangeWire

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Could these rulings hasten Google’s breakup? Our expert panel on ATS London 2024 On Wednesday, September 11, we will discuss this topic in depth. Tickets for the final tour are now available.