On January 24th, 2023, the United States Department of Justice filed an antitrust lawsuit against Google. The lawsuit accuses Google of monopolizing digital advertising technologies and using its power to control the market. Here’s what you need to know about this development and what it means for the future of online advertising…

What is Being Alleged?

The U.S. Department of Justice is accusing Google of breaking antitrust law by unfairly dominating web-based search and advertising services. Specifically, they allege that Google has used its market power to control digital advertising technology products in order to increase profits for itself at the expense of content creators and advertisers. According to the complaint, “In pursuit of outsized profits, Google has caused great harm to online publishers and advertisers and American consumers. This lawsuit marks an important milestone in the Department’s efforts to hold big technology companies accountable for violations of the antitrust laws.” – Deputy Attorney General Lisa O. Monaco.

Google’s History of Dominance

Google has long been the dominant force in digital advertising technology. Its search engine holds the largest market share among all search engines worldwide (90%). This means that it has been able to charge higher prices for its services than competitors can offer, and this has stifled competition in the digital ad space. For advertisers, this means fewer options when it comes to purchasing ad space. For publishers, this means that their options for monetizing their websites are limited because there is no real competitor to challenge Google’s dominance.

How Will This Affect You?

Google’s dominance leaves little choice and flexibility in how publishers and advertisers grow and innovate in their businesses and in the ad tech space. While it’s too early to tell exactly how this lawsuit will play out or what its effects will be, one thing is certain — it will have implications for both publishers and advertisers alike. If Google changes its business practices based on these allegations, competition in the advertising industry may increase while also allowing publishers to diversify their revenue streams.

What We Think

At SourceKnowledge, we are happy to see some actions be taken to protect what we believe should remain a free and open space for publishers and advertisers alike, not only for the sake of innovation in ad tech, but for publisher’s freedoms in deciding how and with whom to traffic and monetize their properties. We are hopeful that action will spur more flexibility, competition, and innovation in ad tech, while creating a new dynamic for publishers and advertisers to thrive. If you’d like to know more about how we work with the open web and innovative solutions, Get Started Now with SourceKnowledge.