A group of experts have recently disclosed that the lawsuit by the U.S justice department against Google over its dominance of advertising technology could help rivals and websites that sell Ad space.
Chief Executive of Ad tech company Attain, Brian Mandelbaum stated that tech giant company Apple which is steadily growing its Nascent advertising business could greatly benefit if eventually Google Ads become less effective.
In his words, “Apple has an ability to be a new dominant force in advertising because Apple has data through its ownership of phones, its Safari web browser and the distribution of apps through the App Store”.
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Also, few Ad industry executives have expressed concerns over Google’s dominance, stating that the company places Ads on websites it does not own, which they feel is too dominating.
These executives disclosed that if the lawsuit finally becomes successful, it could be the beginning of serious business model changes for Google, which could result in Google losing key data that helps target ads to relevant consumers.
They further disclosed that If Google loses access to data signals, advertisers could see their Google ads become less effective.
Recall that the Justice Department and eight states on Tuesday, sued Google, accusing the company of harming competition with its dominance in the online advertising market, calling for it to be broken up, a move that marks Biden’s administration first blockbuster antitrust case against a big tech company.
The eight states joining the suit include California, Connecticut, Colorado, New York, New Jersey, Rhode Island, Tennessee and Virginia.
In the complaint filed, the justice department alleges that Google actively and illegally maintained its dominance by engaging in a campaign to thwart competition. The tech giant company is accused of gobbling its rivals through anticompetitive mergers, bullying publishers and advertisers into using its proprietary ad technology products.
The U.S government therefore called for Google to be broken up and for the court to order the company to spin off at least its online advertising exchange and its ad servers for publishers.
The suit marks the U.S government second anti-trust complaint against Google since 2020, when Donald Trump’s administration sued the tech giant over alleged anticompetitive harms in search and searching advertising
For a very long time, Google’s critics have claimed that the company’s extensive role in the digital ecosystem enables advertisers to place ads, and for publishers to offer up digital ad space, represents a conflict of interest that Google has exploited anticompetitively.