Google's ad technology practices are under intense scrutiny on both sides of the Atlantic, as the tech giant faces simultaneous legal challenges from U.S. and UK regulators over alleged anticompetitive behavior in the digital advertising market.
DOJ Trial Begins in Virginia
On Monday, Google will face off against the U.S. Department of Justice (DOJ) in a Virginia courtroom for the second major antitrust trial this year. The DOJ alleges that Google has illegally monopolized markets for advertising technology tools across the ecosystem, including demand-side networks, supply-side publisher servers, and ad exchanges.
According to the government, Google engaged in a campaign to condition, control, and tax digital advertising transactions over 15 years by:
- Illegally tying its ad tech tools together
- Excluding rivals from fair competition
- Manipulating ad auctions to give itself an advantage
- Placing unfair conditions on accessing its tools
The trial is expected to last several weeks and feature witnesses from across the advertising and publishing industries.
UK Regulator's Provisional Findings
Meanwhile, the UK's Competition and Markets Authority (CMA) announced on Friday that it believes Google has abused its dominant position in digital advertising since at least 2015. The CMA's provisional findings cite Google's dominance and preferential treatment of its own ad exchange.
Specifically, the British regulator alleges that Google:
- Provided its AdX exchange with exclusive or preferential access to Google Ads
- Allowed AdX to bid first in publisher ad server auctions
- Manipulated advertiser bids to have higher value in AdX auctions compared to rival exchanges
Potential Impacts and Google's Response
For publishers and advertisers relying on Google's tools, a ruling against the company could lead to significant changes in how digital advertising is bought and sold. While there may be short-term logistical challenges, the long-term goal of regulators is to revive competition in the industry.
Google maintains that it faces vigorous competition and has created valuable, innovative tools that benefit publishers and advertisers. The company argues that the government's view of the market doesn't reflect reality.
With antitrust scrutiny mounting globally, including from the European Commission, the outcomes of these cases could have far-reaching implications for Google's dominant position in the $300 billion digital advertising industry.