Google manipulated ad auctions and inflated costs to increase revenue, harming advertisers, the Department of Justice argued last week in the U.S. vs. Google antitrust trial. What follows is a summary and some slides from the DOJ’s closing deck, specific to search advertising, that back up the DOJ’s argument. Google’s monopoly powerThis was defined by the DOJ as “the power to control prices or exclude competition.” Also, monopolists don’t have to consider rivals’ ad prices, which testimony and internal documents showed Google does not. To make the case, the DOJ showed quotes from various Googlers discussing raising ad prices to increase the company’s revenue.
Other slides from the deck the DOJ used to make its case:
Advertiser harmGoogle has the power to raise prices when it desires to do so, according to the DOJ. Google called this “tuning” in internal documents. The DOJ called it “manipulating.” Format pricing, squashing and RGSP are three things harming advertisers, according to the DOJ: Format pricing
Squashing
RGSP
Search Query ReportsThe lack of query visibility also harms advertisers, according to the DOJ. Google makes it nearly impossible for search marketers to “identify poor-matching queries” using negative keywords. The DOJ’s presentation. You can view all 143 slides from the DOJ: Closing Deck: Search Advertising: U.S. and Plaintiff States v. Google LLC (PDF) via Search Engine Land https://ift.tt/qSeMldu
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