A federal judge recently ruled that Google illegally monopolized the advertising tech stack. Of course, this decision is just one encouraging step in a still developing and unprecedented antitrust case. The ruling, which found Google guilty of “willfully acquiring and maintaining monopoly power,” opens the door to potential remedies, including the breakup of the tech giant’s business.
As a reminder, two years ago the U.S. government joined forces with eight states to file antitrust complaints against Google. They’re going after the company’s dominance in various parts of the ad tech ecosystem. The judge’s decision specifically highlights Google’s abuse of monopoly power in the publisher-side advertising technology sector.
Central to the ruling is the unlawful tying of Google’s DoubleClick for Publishers (DFP) and AdX, which are pivotal components of the company’s ad tech stack. DFP is the ad server that publishers have to use. At the same time, AdX serves as the exchange for Google’s own ad server, Google Ad Manager (GAM). The court concluded that this combination created the perfect environment for Google’s anti-competitive behavior to flourish.
The judge decisively flexed in the commercial speech space. He ruled that Google has in fact illegally monopolized the broader internet search market. This ruling originated from violations of the Sherman Act. This landmark federal statute is the primary means by which the U.S. government protects competition and prevents monopolistic practices.
As a result of these determinations, Google’s entire business model may be upended. To fix the anti-competitiveness of Google’s practices, the court should force Google to divest its Google Ad Manager, which includes both AdX and DFP. Moreover, behavioral remedies might be required to maintain a level playing field in the digital economy. Such measures could involve preventing it from favoring its own exchange or need in auction, or auction-like, processes.
The court will set a briefing schedule in the coming days. Together, these acts will establish a hearing date to hash out the proper remedies for Google’s antitrust violations. If the plaintiffs’ decision prevails, it could change the way Google does business in the advertising technology space. In the end, that would just hurt its competitive position and business model.
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