Google under pressure: New antitrust process threatens the giants!

Google under pressure: New antitrust process threatens the giants!

A new legal dispute shakes Google! As soon as the Tech-Riese had a first lawsuit, he is on trial again-this time due to alleged abuse of his market power in the online advertising market. Google stepped in front of the American Court on Monday, and the indictment could not be more serious! US Justice Minister Merrick Garland has made it clear: "Fifteen Years of anti-competitive practices have limited the emergence of rival technology!"

The Ministry is now calling for the dismantling of Google's overwhelming advertising machine. On the shock and interest of the public, the question is: how far will this change the market? The procedure that is to extend over six long weeks illuminates the action behind the scenes of the programmatic advertising, which has become the dominant method on the Internet in recent years. It is a complex, almost opaque auction system that makes it possible to automatically switch from ads on partner sites.

an opaque auction process

Google has proven to be omnipresent in this business and controls the most sought -after tools throughout the process. From DoubleClick's advertising servers who use the publishers to manage their advertising space, from the Google Ads and DV 360 advertising planning tools to the real-time auction exchange ADX. The doj is clear: "Google acts as a seller and buyer at the same time and controls an auction platform." And that causes massive concerns.

The mighty Google advertising factory has not built up over the next to the next. The takeover of DoubleClick in 2007 for a whopping $ 3.1 billion laid the foundation for its central role in the market. Now the Doj Google accuses the competition through extortionate practices by forced to use advertisers and publishers to use their tools and impose access restrictions on rivals. This gives Google a much larger proportion of advertising pie, while the advertisers and publishers are cheated by an incredible 30% of their expenses!

on the way to a dismanteling?

In 2023, Google's sales in this area were sufficient $ 31.3 billion! But the DOJ has made a call for help: Internal documents show that Google would earn significantly less in a competitive market. The plan? The closure of DoubleClick and ADX should revive the competition. That could turn the entire online advertising market upside down.

In order to avert this drastic step, according to Wall Street Journal, Google could have offered its advertising activities to several independent companies, all controlled by the parent company Alphabet. But the DOJ clearly rejects this offer and prefers to bring the argument to court. Millions of eyes will look at the judgment that could be a long time coming - followed by a possible appeal procedure from Google!

The pressure is enormous: is the end of Google's inviolable dominance in sight? And what does that mean for the future of digital advertising?