An expert hired by Google testified in an antitrust trial, disputing federal regulators' claims that Google holds an illegal monopoly over online advertising technology. The expert, an economist, argued that the government's focus on a narrow market segment fails to consider the broader competition Google faces.
The government alleges that Google controls the market for 'open web display advertising,' but the expert pointed out that advertisers have shifted spending to social media platforms like Facebook and TikTok, as well as online retailers like Amazon. When considering all online display advertising, Google's U.S. market share is only 10% as of 2022, down from 15% a decade ago.
Furthermore, the expert highlighted the shift in ad placement from desktop and laptop screens to mobile devices and apps, where Google's market control is less pronounced. Data showed a decrease in display ad spending on desktop and laptop devices from 71% in 2013 to 17% in 2022.
The trial, taking place in Alexandria, Virginia, is nearing its conclusion, with the government accusing Google of maintaining an illegal monopoly that limits choices and inflates costs for publishers and advertisers. Google refutes these claims, emphasizing the value its products bring to publishers and advertisers by improving ad quality and targeting.
The government alleges that Google controls various aspects of advertising technology, tying markets together to compel publishers to use Google's services. However, the expert argued that Google's take rate on ad sales has decreased in recent years and is lower than the industry average.
The trial is separate from another case where the government declared Google's search engine a monopoly. While a ruling was made in favor of the government, potential remedies are yet to be determined, including restrictions on Google's business practices or divestiture of certain assets.
