The Scoop on the Google Antitrust Lawsuit

A guide for marketers on what’s to come

An antitrust lawsuit filed by the U.S. Department of Justice (DOJ) against Google is going to trial, as was announced in mid-September 2023. Google offers some of the most prominent ad tech products on the market and marketers are no stranger to its services. Depending on the results of the trial, marketers may need to make a significant shift in paid advertising efforts to rely on vendors other than Google to execute plans.

THE BRIEF: WHAT'S HAPPENING
The Department of Justice first filed a complaint against Google in 2020, citing anticompetitive tactics used by Google to maintain and grow the company’s monopolies for its search services, search advertising and general search text advertising. A second lawsuit against Google was filed on January 24, 2023 and alleges the same notion that Google abused its market power in the digital advertising market to stifle competition and raise prices for its advertisers.

There are three main areas of focus in this lawsuit:

1. Publisher ad servers: The DOJ alleges that Google has used its market power in DoubleClick for Publishers, the dominant publisher and ad server on the market, to coerce publishers into using other Google ad tech products like Ad Exchange.
2. Ad exchanges: Google Ad Exchange is the largest ad exchange in the world. The DOJ contends that Google has used its market control to favor its own network over those of its competitors.
3. Advertiser ad networks: The DOJ charges that Google has used its market power in its Display & Video 360 platform, the largest advertiser ad network in the world, to make it difficult for advertisers to use competing ad networks.

THE SITUATION: WHY MARKETERS SHOULD CARE
It’s important for marketers to understand the details of this lawsuit because the results will likely impact marketing operations in three significant ways if the DOJ is successful in its case against Google:

• Decreased advertising costs: The DOJ claims that Google’s anticompetitive practices are raising advertising costs for businesses. A ruling in the DOJ’s favor could see the cost of advertising go down, freeing up dollars for other channels or tactics.
  
  
• More choices: The suit also alleges that Google is limiting competition in the marketplace through its business practices. If the DOJ wins this case, Google’s competitors will have more opportunity in the industry, meaning more advertising choices for businesses.
  
  
• Increased transparency: A successful ruling in this case could also lead to increased transparency and accountability from Google. That ultimately will help advertisers better understand Google’s ad tech products and how they operate.

THE PLAN: WHAT THE MARKETING INDUSTRY CAN DO
In the interest of protecting your business from the implications of this lawsuit, there are actionable steps to take now:

• Mix it up: When making decisions about digital media either internally or with a partner agency, consider using a variety of vendors and avoid relying too much on Google’s advertising products.
• Ask for deals: When you do choose to work with Google, try to negotiate to get the best possible deals on ad products and services. Before having conversations with Google, be prepared that if you or your agency team cannot settle on a deal that’s in your company’s best interest, it may be time to walk away from working with Google for the time being.

In the meantime, you can do a few things to brace for impact. Carve out some time in your schedule to learn more about different ad products and services and the vendors that offer them. Where applicable, look to your agency partner for more information and support. It’s likely they will have knowledge and expertise on the subject to share and help you make decisions when they arise. They can help you develop a backup plan with a list of alternate media vendors in case other paid media support is needed in addition to Google’s ad tech products and services.

THE NEXT STEPS: WHERE MARKETING GOES FROM HERE
With the Google antitrust lawsuit comes big implications for the advertising industry. It’s important for businesses with marketing functions to be aware of the ins and outs of this lawsuit and how it will affect their media efforts. By staying alert and taking a few proactive steps, companies can protect their interests and ensure they can operate in a fair and competitive marketplace.

Your business can support the DOJ’s lawsuit by filing letters of support and/or testifying on behalf of the DOJ. And check back at insights.rkconnect.com – we’ll be sharing updates on the lawsuit as the situation evolves and information becomes public.