Tough day for Google.
In a case that could redefine how digital ad platforms operate (which we’ve been covering), a federal judge has ruled that Google violated U.S. antitrust laws by monopolizing two key markets in digital advertising: the market for publisher ad servers and the market for ad exchanges. The court also found that Google unlawfully tied its publisher ad server (DFP) to its ad exchange (AdX) to maintain its dominance.
The long-awaited decision marks a major win for the DOJ and a large coalition of state AGs, who’ve accused Google of using its power to suppress competition in the open-web ad ecosystem. Publishers and publisher ad tech platforms have long argued that Google’s control over ad serving and auctions stifled competition, and this ruling validates their complaints.
Next comes the remedy phase. A forced divestiture of Google’s ad tech assets is now a very real possibility. Google, however, plans to fight back, as expected.
Lee-Anne Mulholland, the company’s VP of Regulatory Affairs, said: “We won half of this case and we will appeal the other half.” She added, “Publishers have many options, and they choose Google because our ad tech tools are simple, affordable, and effective.”
Why This Matters:
I, mean, yeah. Google may be forced to sell off Google Ad Manager, which includes both its publisher ad server and ad exchange. These are structural changes. Ultimately, this doesn’t just matter, it’s one of the most consequential antitrust rulings ever for the digital ad market. (If not the most consequential.)
Experts React:
Here are the top 10+ takes we’ve seen about the ruling from X:
Our Take:
This is, as the kids would say, a new “core memory.” If the ruling stands, it marks a true inflection point for adtech. The open web has long operated under the shadow of Google. This decision doesn’t just “tweak” the existing system. It could open things up and alter the overall DNA of open web adtech.
At the same time, will this matter for Google long term? Maybe not. Terry Kawaja of LUMA always seemed to have the right take when, last year, he said, for Google, “guilty is good.” Per Terry:
“This would be a positive for Google as it rids them of their business unit with the slowest growth, the lowest margins, and the biggest source of government headaches. And it would allow them to focus on their much larger, more strategic owned and operated businesses, like search, YouTube, and cloud, among others.”
