Oct 1, 2024, 12:00 AM
Oct 1, 2024, 12:00 AM

Google defends against DOJ's ad tech monopoly claims

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Highlights
  • Google has rested its defense in an antitrust lawsuit by the Department of Justice regarding its dominance in the online advertising market.
  • The company argues that the DOJ's market definition is flawed, claiming a 90% market share in open web display ads through its DFP service.
  • If Google successfully proves that the market is a single two-sided entity, it could significantly weaken the government's case.
Story

In the ongoing antitrust lawsuit against Google in the United States, the company has concluded its defense, arguing that the Department of Justice (DOJ) misunderstands the online advertising landscape. Google contends that the DOJ's definition of the ad tech market is flawed, asserting that it dominates the market for open web display ads through its publisher ad server, DoubleClick For Publishers (DFP), which holds a 90% market share in the U.S. The company claims that the market should be viewed as a single two-sided market rather than three distinct segments, which would complicate the government's case. This argument hinges on the idea that competition exists not just within the ad tech space but also from social media platforms, which the DOJ has not adequately considered. Witnesses in the trial have emphasized the necessity for publishers to use DFP to access Google's extensive advertiser network, suggesting that Google's market power is being leveraged to stifle competition. However, some large tech companies have opted to develop their own ad servers, indicating a potential shift in the market dynamics. The presiding judge, Leonie Brinkema, has noted that the definition of the market is crucial to the case and has expressed concern over Google's inconsistent positions in different courts. The outcome of this case could have significant implications for the future of online advertising and competition in the digital marketplace.

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