Yesterday, ahead of its defense against a DOJ antitrust trial this week over the company’s advertising technology, Google published a blog post outlining its position and key arguments. Written by Lee-Anne Mulholland, Vice President of Regulatory Affairs, the post includes three main points:
First, contrary to the DOJ, Google says there is a lot of competition in market. “The DOJ’s narrow view of the ad tech market doesn’t reflect reality,” the post reads, citing “hundreds” of companies competing to run ads online.
Second, because the market is competitive, Mulholland emphasized that Google’s adtech products are interoperable and built to work with competitors’ offerings, with advertisers and publishers often using a mix of services from different providers.
Third, Google claims its ad tech fees are below industry averages. “You wouldn’t know it from reading the DOJ’s complaint,” criticizes Mulholland, saying the fee structure is “hardly a sign of monopoly abuse.”
The company then goes on to say that the “DOJ’s case could make it harder for small businesses to grow and hurt the quality of ads people see.” Generally speaking, SMBs are a great market for Big Tech, but they also serve as a useful audience to point to when defending its business against potential regulatory action.
Why This Matters:
An interesting highlight of the blog post is Google’s focus on retail and commerce media, which might be emerging as a key example of “this is a competitive and thriving market” for Google.
Rather than just citing known adtech players and Big Tech companies with adtech businesses—Amazon, Xandr, Meta, Criteo, The Trade Desk, and Index Exchange are all name-checked in the blog post—Mulholland also refers to Walmart, Target, PayPal, Costco, and United Airlines. “It is a fiercely competitive industry—and new technologies are making it more dynamic each day,” says Mulholland.
According to a CNBC report with data from Emarketer, global retail media ad spending is projected to more than double from $114.18 billion last year to $233.89 billion in 2027. Walmart, Target, Kroger, PayPal, Chase, United Airlines, Uber, Planet Fitness, Home Depot, Marriott—you name it. If all of these players are entering the market and buying and selling ads, it gives Google more examples—beyond Big Tech and niche adtech players most people have never heard of—of how there are multiple dance partners out there. This can help Google bolster its argument that the digital ad landscape is highly competitive. (It also doesn’t hurt that regulators are likely still learning about “retail media.”)
Experts React:
According to Jason Kint, who leads Digital Content Next, a trade organization for publishers, these points made in the blog post will not form a winning argument for Google. “Like I said with Search after reading that complaint and knowing the business history,” he tweeted, “Google is screwed with adtech, too. DOJ and its attorneys did their homework, they know their stuff after years of study and discovery. I’m looking forward to the next four weeks.”
NetChoice, a trade association that includes major tech companies like Google and Meta, and acts as an ally for them, of course, disagrees and says, “The DOJ’s case is flawed, rooted in outdated definitions, and benefits only the government’s preferred competitors at the expense of everyone else—consumers and businesses alike.”
Our Take:
How will the court case this week play out? It is unclear, though Google seems destined for some kind of loss, either in the form of financial penalties or even a potential decoupling or spinout of some of Google’s adtech stack.
What do you think is the likeliest outcome?
