A trial in federal court in Virginia is currently underway to determine whether Google’s dominance in the technology controlling the sale of Internet display ads constitutes an illegal monopoly. The Justice Department and states argue that Google’s ad tech stack unfairly favors itself over other players in the industry and deprives publishers of revenue.
Witnesses at the trial have detailed how Google’s automated auctions of ad sales work. The process involves ad servers used by publishers, ad networks used by advertisers, and an ad exchange that hosts instant auctions to match publishers with advertisers. Google’s control of all three components has led to accusations of rigging the system in its favor.
Publishers have found ways to work around Google’s system, such as conducting auctions outside of its purview through a process known as “header bidding.” Google’s response was to force winning bids back into its ad exchange, ensuring it still benefited from the auction.
Google argues that its innovations have improved the quality of online ads by better matching them to consumer interests. The company says it hasn’t run auctions in the contested way since 2019 and that its market share has started to erode in the last five years.
The trial in Virginia follows a recent ruling in Washington that found Google’s search engine also constituted an illegal monopoly. The outcome of these cases could have significant implications for Google’s business practices and its position in the online advertising market.
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