Staff Reporters
Oct 10, 2024

DOJ targets Google’s search monopoly with potential breakup

The US government escalates its case against Google, proposing measures that could reshape search and impact the ad ecosystem.

Photo: Getty Images.
Photo: Getty Images.

As the Google vs. DOJ trial continues to progress, the US Department of Justice (DOJ) has formally recommended a potential breakup of Google’s business as a key remedy in its ongoing antitrust case. Late Tuesday, the DOJ filed proposals that could impose structural and behavioural changes aimed at curbing Google’s dominance in the search market.

The DOJ outlined measures that could prevent Google from leveraging its products, such as Chrome, Play, and Android, to provide an unfair advantage to its search engine. The filing also suggests that Google’s billion-dollar deals with companies like Apple and Samsung, which ensure its search engine remains the default on their devices, could be prohibited. The introduction of a “choice screen” allowing users to select from other search engines is another proposed remedy. This follows an earlier ruling in August, which found that Google’s control of the search market violated antitrust laws.

Google, in its defence, has argued that its adtech business operates as a “two-sided market” benefiting both advertisers and publishers, suggesting that its tools support the broader digital ecosystem. The company has also downplayed the financial significance of some ad products, such as display advertising, to challenge claims that it holds an overwhelming grip on the market. Additionally, Google maintains that the integration of its services, such as Ad Exchange and DoubleClick, promotes innovation and security, helping advertisers while streamlining processes.

Earlier this week, Google faced scrutiny in New Zealand, where it has stated it may stop linking to news content if lawmakers pass a proposed 'link tax' law. The legislation would require platforms like Google and Meta to compensate media outlets for news content, a move that mirrors regulations seen in Australia and Canada. Google argues that this would disrupt existing commercial agreements with publishers and harm the open internet. This adds to the global pressure tech giants are facing over how they manage and monetise news content.

Marketers are watching the trial unfold with keen eyes, as the proposed changes—if implemented—could lead to significant shifts in the digital advertising landscape. Should Google lose its control over pre-installed search agreements on mobile devices, marketers may need to adapt to a more fragmented search environment, reallocating their ad spend across multiple platforms. The possible introduction of a “choice screen” may also lead to greater competition in the search market, offering consumers more options and forcing advertisers to consider alternative platforms for their campaigns.

Additionally, the DOJ’s suggestion that Google be required to share its data and dismantle its integrated services, such as Ad Exchange and DoubleClick, could create a more complex ad ecosystem. Marketers may face new challenges in campaign management and data targeting, while the reduced dominance of Google’s platforms could open up opportunities for emerging players in the adtech space.

As closing arguments approach on November 25, the implications of this case remain to be seen.

Source:
Campaign Asia

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