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how tech giants are adapting to the emerging regulatory environment

2024-09-23

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[in recent years, especially as the influence of the new brandeisianism in the global antitrust field continues to expand, global high-tech digital platform companies are facing many challenges at the level of non-competitive value, and are also undergoing systematic adjustments from business structure, operating model to legal strategy and even social evaluation.]

on september 9, the northern virginia federal court opened a hearing on google's second antitrust case. judge leonie brinkema, as the presiding judge, heard the u.s. department of justice's lawsuit, which accused google of illegally controlling the market for software used to buy and sell digital advertisements and constituting a monopoly in the digital advertising industry.

google’s “tripoly”

google has faced antitrust-related charges from the united states and the european union many times before. the advertising technology case charged by the u.s. department of justice this time involves more complex market operations and monopolistic behavior. google has established a "triple monopoly" through publisher advertising server business google ad manager, advertising exchange platform google adx and advertising network google ads. since advertisers rely on digital tools in the advertising technology industry to achieve real-time advertising delivery and query, google uses the above three tools to build a strong market barrier, making it difficult for advertisers to choose other competitors' services within its advertising ecosystem, thereby achieving a monopoly on the entire online advertising industry. the representative lawyer of the u.s. department of justice told the judge that each of google's online advertising businesses has at least half of the market share, and some are as high as 91%.

another key reason why google was sued by the u.s. department of justice for monopoly is the operating model of its advertising technology stack. this technology determines which ads are displayed on many websites by matching website publishers and advertisers. google eliminated potential threats to its advertising business early on by acquiring companies such as double click and admeld, allowing google to control multiple key technologies in the advertising technology stack and consolidate its dominance in the advertising technology market.