Google v USA: Week Two Court Report

The ‘trial of the century’ for ad tech is underway. We’ll be wrapping up the events from the courtroom every Friday until the trial ends.

In the second week of the USA v Google antitrust trial, significant developments shed further light on Google’s dominance and potential anti-competitive practices in the ad tech industry. Let’s delve into the key points and noteworthy statistics from recent testimonies and discussions.

Catch up on week one

Key witnesses this week

• Brian O’Kelley, CEO, Scope3
• Neil Mohan, CEO, Youtube
• Jeremy Helfand, former EVP of Ads and Data Platforms at Disney
• Susan Schiekofer, Managing Director of Digital Investment, GroupM
• Tim Cadogan, former CEO, (current chairman of the board) OpenX
• Rosa Abrantes-Metz, Managing Director at Berkeley Research Group
• Matthew Wheatland, The Daily Mail
• Professor Robin Lee, Harvard

Continued Focus on Google’s Dominance

Witnesses continued to highlight Google’s dominance in the ad exchange market, particularly through header bidding. The concerns raised about high take rares and lack of transparency underscore the challenges faced by competitors like Equativ.

Brian O’Kelley’s video deposition further emphasised Google’s advantage in user data, showcasing the company’s stronghold in the industry. Youtube CEO Neal Mohan was called as a witness, and spoke of the ‘choice’ advertisers have in the market.

Rosa Abrantes-Metz delivered damning testimony regarding Google’s exclusionary practices - concluding that Google’s conduct protected Google’s own products from competition.

Matthew Wheatland of Daily Mail testified that the news publishers' estimated loss would have exceeded $350,000 per month if they were to move their ad inventory away from Google’s publisher ad server - throwing into stark light Google’s dominance across the open web.

Harvard's Professor Robin Lee gave his expert insight into Google's monopolistic practices, estimating DFP’s market share as 91% of open web display impressions globally, and that AdX wins around 50% of all auctions, and 60% of those are won without competition. Strong evidence of a monopoly, in Lee's opinion.

Impact on Competition and Revenue Strategies

The trial continued to highlight Google’s anti-competitive practices and their impact on competition in the ad tech industry. The ongoing adoption of header bidding remains a key factor in challenging Google’s dominance and promoting a more level playing field.

Insights from Industry Experts

Testimonies from Neal Mohan, CEO of YouTube offered valuable insights into Google’s strategic acquisitions and industry influence. Economic experts Weintraub and Metz further examined Google’s conduct, highlighting practices that impact customer choices and pricing dynamics.

In conclusion, the US v. Google antitrust trial continues to unravel the complexities within the ad tech industry. Stay tuned for more updates as the trial progresses.