DOJ vs. Google | DOJ complaint break down | Part II

Google’s Playbook — Locking Down the Ad Tech Market

Continuing from our previous discussion, Google’s ad tech dominance didn’t just materialize overnight. It’s been meticulously crafted through a series of calculated moves that have systematically cornered the ad tech market and stifled competition. Let’s delve into some pivotal tactics outlined in the DOJ’s complaint under Part IV. of DOJ’s complaint GOOGLE’S SCHEME TO DOMINATE THE AD TECH STACK:

Sorry, there we go:

1. Buying Control of Key Tools That Link Publishers and Advertisers

Google’s journey to the top of the ad tech food chain began with strategic acquisitions. In 2008, Google acquired DoubleClick, gaining control over the critical tools that connect publishers and advertisers. This move was like buying the entire chessboard when others were just learning how to play.

Whoever said money can’t solve problems clearly didn’t have Google’s budget.

2. Leveraging Acquisitions to Lock Out Rivals and Control Each Key Ad Tech Tool

But buying the tools was just the first step. Google then used its dominant position to lock out rivals:

“Google made its Google Ads’ demand available only through its AdX ad exchange. In turn, Google effectively made its ad exchange available only to publishers using its publisher ad server (DFP).”

It’s a classic case of mutual reinforcement. By restricting access to its products, Google ensured that both publishers and advertisers had little choice but to use its services—even if it wasn’t in their best interest.

3. Extinguishing Potential Threats and Locking Down Technology

When potential competitors emerged, Google’s approach was straightforward: if you can’t beat them, buy them—and then make sure they can’t compete.

A notable example is Google’s acquisition of AdMeld, a company offering innovative ad tech solutions that posed a threat to Google’s dominance. After the purchase, Google integrated AdMeld’s technology into its own ecosystem and effectively shut down its independent operations ;)

Why worry about competition when you can make it disappear?

4. Manipulating Ad Auctions and Exerting Market Control

Google’s control didn’t stop at owning the tools; it extended to manipulating the very auctions that determine ad placements. By adjusting bids and influencing auction dynamics through its ad exchange, Google often ensured it came out on top—sometimes at the expense of advertisers and publishers.

“Google has uniquely positioned itself to manipulate auction outcomes to protect its interests. This involves submitting optimized bids that other ad exchanges can’t match due to a lack of similar data or technology.”

“Why play fair when you can set the rules of the game?”

5. Responding to Industry Innovations with Exclusionary Practices

When header bidding emerged as a way for publishers to bypass Google’s fees and increase competition, Google didn’t innovate—it retaliated. The company developed Open Bidding, a platform that was marketed as an open alternative but was designed to keep Google’s grip tight on the market.

“Open Bidding was promoted as a transparent alternative but effectively served to maintain Google’s dominance by controlling key transaction details and sidelining other exchanges.”

Basically, if you can’t join them, create your own club with exclusive membership—when Leland Jr. didn’t get into Harvard, or, the key innovation didn’t happen as Google expected.

By examining these tactics, it’s clear that Google’s path to dominance wasn’t paved by superior products alone but also by strategic moves that eliminated competition and choice. As the adage goes, all’s fair in love and war—but perhaps not in antitrust law.

At least that’s what DOJ has said. And I think they made their point.

reference

U.S. Department of Justice, Antitrust Division. (2023). U.S. and Plaintiff States v. Google LLC [2023] - Trial Exhibits. Retrieved from https://www.justice.gov/atr/us-and-plaintiff-states-v-google-llc-2023-trial-exhibits

U.S. Department of Justice, Office of Public Affairs. (2023). Justice Department Sues Google for Monopolizing Digital Advertising Technologies. Retrieved from https://www.justice.gov/opa/pr/justice-department-sues-google-monopolizing-digital-advertising-technologies