The story: The antitrust trial against Google kicked off on September 9th, marking the start of what could reshape the digital advertising industry as we know it. The Department of Justice (DOJ) argues that Google has monopolized multiple areas of adtech, with its case built on four main claims:
In the words of Senior DOJ attorney, Julia Tarver, during the government’s opening statement, “Google is not here because they are big. They’re here because they used that size to crush the competition.”
Allegedly, Google’s purchase of companies like DoubleClick allowed it to lock rivals out from its AdX platform, maintaining control over a substantial market majority. Testimonies from industry players included Kevel, Gannett, and Index Exchange, who all supported the DOJ’s allegations. Gannett’s Tim Wolfe compared switching ad servers to “changing tires on a car mid-race”, illustrating the barriers that publishers face when attempting to move away from the Google ecosystem.
As the plaintiff, the DOJ gets to present its witness, and essentially, its case first. But Google’s defense was still able to poke holes in how the DOJ defines the market. Google insists that its share of the overall advertising market is lower than what the DOJ alleges, and that it is not obligated to work with competitors under favorable terms. Google also questioned the DOJ’s focus on web advertising, citing other channels like social media, where companies like Facebook and Amazon compete more directly.
But as concluded by AdWeek, the DOJ’s Day 1 witness testimonies all seemed to uphold the DOJ’s definitions of the adtech market and showcase “the difficulty other firms have competing with Google.”
The takeaway: The U.S. v. Google trial could be a major turning point for digital advertising, highlighting the challenges of competing in a market dominated by one player. For marketers and advertisers, it's a clear reminder of how platform exclusivity and limited interoperability can impact campaign strategies. While the outcome of the trial is uncertain, staying informed is crucial, as it could reshape the rules for ad serving and change the competitive landscape in the industry.
More takeaways from the US v. Google LLC. trial:
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WATCH → Digiday’s “WTF is the Justice Department’s ad tech antitrust case against Google?: A refresher” helps break down the basics of the case in this 7-minute video.
READ → Advertisers plan to withdraw from X in record numbers according to a global survey by market research firm Kantar, dealing another blow to the financial (mis)fortunes of the social media company.
LISTEN → This special episode of the AdTechGod Pod is joined by CEO and co-founder of Chalice Custom Algorithms Adam Heimlich to discuss the Google antitrust trial and its impact on the adtech industry. (Listening time: 23:12).
