Antitrust law is complicated. So is ad tech. The Justice Department's lawsuit against Google is a thicket. Here's a handy map.
The presence of more ad tech players, however, is a straw man and a “disingenuous” argument, according to the ad executive. “Amazon’s relatively nascent in their ad business, and they’ve built it against the backdrop of threatened litigation and increased competition. And if you look outside of big tech companies, there’s really no one competing except for a few, much smaller players,” they said. “Sure, maybe it’s not a monopoly problem, but it’s an oligopoly problem at best.
The ad tech ecosystem, according to the DOJ. Google says you’re looking at something that is definitely not a monopoly. Nope. Just regular stuff.No matter how compelling the Justice Department’s argument might be, it isn’t a sure bet. The US court system has been slow and hesitant to step in on competition issues in recent years, and over the last few decades, a legal theory has evolved that suggests a company isn’t a monopoly unless it raises prices for consumers.
“It does harm consumers. If your grocer has to pay several hundred dollars more for ads, you as the consumer are eating that cost,” he said. “If the San Francisco Chronicle makes less money selling ads, we see that as consumers in the form of more paywalls, less budget for employees. It affects the sustainability of a free and independent press. We all see it indirectly, and that has to be why the Department of Justice cares about this problem.
“The DOJ’s suit is exhaustive and seems better formulated than the suit from multiple state Attorneys General from 2020,” said ad industry analyst Eric Seufert. “The allegations in the DOJ suit are troubling, but it’s unclear how much impact a full adoption of the DOJ’s proposed remedies would have on Google’s revenues” because Google’s advertising network that shows ads across the web isn’t as financially significant as the ad business it does on specific sites like Search and YouTube.
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