Introduction to the Google Antitrust Case
The U.S. Department of Justice has proposed that Google sell two of its advertising products to restore competition in the ad tech space. This proposal comes after a judge found Google guilty of “willfully acquiring and maintaining monopoly power” in the digital ad space last month.
Proposed Solutions by the Department of Justice
The DOJ’s filing notes that Google should divest its ad exchange product AdX, along with a “phased” sale of DoubleClick for Publishers, an ad server for website publishers. The department also wants Google to avoid running an ad exchange for 10 years post the sale of AdX. The proposal also directed Google to open up its ad buying tools, including AdWords, and have them work with all third-party ad tech products “on non-discriminatory terms with respect to bidding, matching, placement of ads, or provision of information, except at the express instruction of an advertiser.”
Allegations Against Google
The DOJ alleged Google had “ensured that publishers would lose significant revenue if they did not use AdX.” It also accused the search giant of creating a monopoly by integrating AdX and DFP, forcing websites to use Google’s publisher product. This has led to a lack of competition in the ad tech space, harming both publishers and advertisers.
Google’s Response to the Proposals
In response to these proposals, Google’s VP of regulatory affairs, Lee-Anne Mulholland, said that the measures would harm publishers and advertisers. “The DOJ conceded Google’s proposed ad tech remedy fully addresses the Court’s decision on liability. The DOJ’s additional proposals to force a divestiture of our ad tech tools go well beyond the Court’s findings, have no basis in law, and would harm publishers and advertisers,” Mulholland said in a statement.
Google’s Proposed Remedies
Google proposed its own set of remedies in a separate filing. These include making AdX real-time bids available to all third-party ad servers, and keeping Google’s actions under an independent compliance observer for three years. However, it remains to be seen whether these proposals will be accepted by the DOJ.
Ongoing Antitrust Pressure
Google is fighting antitrust pressure from several directions. Separate from the ad tech case, the U.S. also wants the company to sell its Chrome browser after a judge found the company to be a monopoly in the online search market. This increased scrutiny is likely to continue, with the goal of promoting competition in the tech industry.
Conclusion
The proposed sale of Google’s advertising products is a significant development in the antitrust case against the company. While Google has proposed its own set of remedies, it remains to be seen whether these will be accepted by the DOJ. The outcome of this case will have significant implications for the tech industry, and could lead to increased competition in the ad tech space. Ultimately, the goal of the DOJ’s proposals is to promote fair competition and protect the interests of publishers and advertisers.
