Court Rules That Google Ads Is a Monopoly
Google has willfully acquired and maintained monopoly power over online ads in violation of antitrust measures, ruled a U.S. District Court Judge in the Eastern District of Virginia on Thursday.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
The court found that Google had monopolies in the online publisher ad server and ad exchange markets and that it exploited its monopoly power to introduce anticompetitive policies. The decision should motivate regulators and lawmakers to recognize the competition that broadcasters and journalism outlets face, said NAB and the News Media Alliance in releases praising the ruling.
“Today’s decision affirms what local broadcasters and other publishers have long known: Google has used its dominance in the online advertising marketplace to disadvantage content creators and tilt the playing field,” NAB CEO Curtis LeGeyt said in the release. “As policymakers and regulators consider the implications of this ruling, we urge them to recognize that the same Big Tech dominance harming digital publishers is also undermining the advertising revenue local broadcasters rely on to serve their communities.” LeGeyt said broadcasters are looking forward to “swift action” from the FCC to improve their competitive stance with tech platforms.
News/Media Alliance President Danielle Coffey said Google has abused its market power for decades. “Google’s monopolistic tactics -- this time in the advertising market -- have starved content creators of the revenues they deserve and need to sustain quality journalism.” The release said addressing this matter was the purpose of the alliance- and NAB-backed Journalism Competition and Preservation Act. “We will continue to work with our legislative champions," Sens. John Kennedy, R-La., and Amy Klobuchar, D-Minn., "to find a path forward for this desperately-needed legislative solution.” Google’s parent company, Alphabet, didn’t comment.
Jeffrey Westling, American Action Forum's director-technology and innovation, said in a blog post that he expects Google to appeal the decision. “The case demonstrates that current antitrust law and standards can fully protect competition and consumers” and could “dampen calls for broader reform to antitrust laws.”