Google’s Antitrust Strategy: Evidence of Tactics to Dominate Ad Competition

In the ongoing antitrust trial against Google, new evidence has emerged from prosecutors revealing statements made by a former executive indicating that the company’s intention behind its advertising platform was to “crush”competitors in the industry.

The remarks were made by David Rosenblatt, who previously served as Google’s president of display advertising. Notes presented in court show that Rosenblatt asserted, “We’ll be able to crush the other networks and that’s our goal,”in relation to Google’s strategy during late 2008 or early 2009. He elaborated on the advantages of possessing technology across both sides of the advertising market, likening Google’s standing to that of NYSE and Goldman Sachs.

According to Rosenblatt, “Google has created what’s comparable to the NYSE or London Stock Exchange; in other words, we’ll do to display (ads) what Google did to search.”He also emphasized that by controlling its own publishing ad servers, Google’s advertiser ad network would possess the potential for a “first look”at available ad placement opportunities, creating a situation which would be a “nightmare”for ad publishers looking to switch platforms.

These comments contribute to the case built by the U.S. Department of Justice, which claims that Google has utilized exclusionary practices to uphold an illegal monopoly in the advertising market, violating sections 1 and 2 of the Sherman Antitrust Act of 1890. Filed in 2023, the lawsuit commenced on September 9 and seeks to compel Google to divest significant portions of its adtech business while also preventing certain business practices.

Google has refuted all allegations, arguing that it competes robustly with other digital advertising entities such as Microsoft, Amazon, and Meta. The company asserts that default search engine contracts enhance user experience, which is why users prefer Google as their choice, and claims the DOJ’s market share calculations in advertising are flawed.

This antitrust case differs from a previous suit filed by the DOJ in 2020, which accused Google of maintaining an illegal monopoly in the search engine market and resulted in a ruling against the company. Judge Amit P. Mehta stated in the decision, “Google is a monopolist, and it has acted as one to maintain its monopoly.”

Via Reuters

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