Google revealed that it will counter the Department of Justice's (DOJ) antitrust claims regarding its ad tech. “On Monday Google will go to trial to defend against claims filed by the Department of Justice (DOJ) about some of our advertising technology,” Lee-Anne Mulholland, Google’s VP for Regulatory Affairs, said.

In a trial that will be presided over by Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia, Google said it will argue that it offers affordable and functional products that advertisers and publishers prefer. 

The Department of Justice (DOJ) had accused Google of monopolizing the digital advertising market through its advertising technology. This case is similar to claims by the UK watchdog accusing Google of anti-competitive tactics in the ad market.

The trial is expected to shed light on how Google views its role in the digital ad market and its defense against the DOJ's allegations. 

Google will argue that the ad tech market is competitive

Google plans to argue that the digital ad tech industry is diverse with many competitors. The DOJ claimed Google controls 91% of the ad server market, 85% of the ad network market, and over 50% of the ad exchange market.

Google says that its ad tech is part of a wide competitive environment that provides options for businesses. Google cites major tech companies including Microsoft, Meta, and Amazon as part of its competitors. 

The company believes the DOJ's perspective doesn't show the true nature of the market, where many companies are constantly creating new products and services and growing their businesses. For example, Google points to the fact that new entrants, like PayPal and Costco, have recently launched ad tech services. 

Google claims advertisers have more options to select from different ad tech solutions

Another aspect of Google's defense is the ability of different ad technologies to work together and provide more options for businesses and consumers.  

Google claims its ad tech can work with products from competitors, giving advertisers and publishers the flexibility to use different tools to suit their needs. “We give rivals access to our products even though American antitrust law doesn’t require it. It’s what our customers expect, and it helps the whole ads ecosystem,” Mulholland said.

According to Google, advertisers use three different platforms to buy ads, and large publishers use six platforms to sell ads. Google's argument aims to demonstrate that there is no monopoly when the industry is filled with competitors that meet diverse customer needs.

Google’s contention about ad fees 

The Justice Department will argue that Google's dominance in online advertising drives up costs for advertisers and news publishers. 

Google will contend that its advertising fees are lower than the industry average. It claims that when publishers use its ad tech products, they earn around 70% of the money from ads, and sometimes more. It will argue that its ad tech services are a good deal for publishers, allowing them to keep most of the revenue.

Google will also argue that the DOJ’s lawsuit could make things worse for the ad tech market. The company says that if the DOJ interferes with how online ads are currently managed, it could lead to higher costs for businesses, especially small businesses. It could also affect the quality of ads rolled out to consumers. 

In recent times, Google has been facing several investigations regarding anti-competitive activities. In the UK, the Company risks up to 10% of its annual global revenue if found guilty by the Competition and Markets Authority (CMA). 

Google also faces a potential breakup of its Chrome browser and Android system as part of the remedies for its search dominance in the U.S. 

The company will also deal with a legal dispute with Yelp over allegations of unfair business practices.