Google is on trial for allegedly abusing its dominance of the $200 billion digital advertising industry.
The U.S. Department of Justice claimed that through acquisitions and anticompetitive conduct, Google seized sustained control of the full advertising technology (“adtech”) stack: the tools advertisers and publishers use to buy and sell ads, and the exchange that connects them.
In response, Google denied the claims stating several ad companies compete in the space, a mixture of tools are used so they don’t get the full fees, their fees are lower than industry average and small businesses will suffer the most if they lose this case.
The outcome of the landmark case could bring significant changes to Google and publishers. However, experts argue that could seriously hurt advertisers as well.
It’s equally possible the trial will result in no changes and Google will be free to continue operating as it wants.
Day 1: Accusations and badgering of witnesses (Sept. 9)DOJ laid out their accusations as follows:
Google’s defense:
Bottom line. This trial could determine whether Google’s control over digital advertising constitutes an illegal monopoly, potentially affecting how information is disseminated online.
Day 2: Google keeping publishers hostage & could be more transparent (Sept. 10)Stephanie Layser, former ad exec at News Corp, testifies:
Jay Friedman, CEO of Goodway Group, criticized Google’s variable pricing, describing it as “gaming the system.” His testimony highlighted Google’s inherent conflict of interest in controlling both the buy- and sell-side of the ad market.
Eisar Lipkovitz, former Google VP of Engineering, provided a candid view of Google’s internal dysfunction, noting that Google’s ad auction practices were unfair and lacked transparency.
He also likened Google’s dominance to a financial firm controlling the stock exchange, acknowledging the need for industry regulation.
Day 3: Google has too much data, stifles competition (Sept. 11)Jed Dederick, CRO at the Trade Desk (representing DV360’s main competitor), emphasized that buy-side and sell-side interests should remain separate, highlighting the conflict in Google controlling both.
Other key themes argued:
Key Players:
Key Testimony Highlights:
The trial is moving faster than expected, with DOJ now anticipating half the originally planned time to present their case. Judge Brinkema has encouraged both sides to streamline their arguments, especially around the highly debated “header bidding” topic.
Key Players:
Google has created a “trial media center” website where they are posting documents related to the case. It is unclear if all trial documents are made available there. Google hasn’t widely publicized the location of these documents but it was spotted and shared by Arielle Garcia, Director of Intelligence at digital advertising watchdog Check My Ads, on X.
What’s next. The trial is expected to last a few weeks. If the DOJ wins, Google could face up to $100 billion in advertiser lawsuits, according to Bernstein analysts.
Dig deeper. You can dig deeper into trial updates on the United States vs. Google website.
The other huge Google antitrust trial. In August, a federal judge ruled in a separate case that Google violated antitrust law. Dig deeper into that trial in our article, U.S. vs. Google antitrust trial: Everything you need to know.
This article will be regularly updated with the latest developments from this landmark trial.