September 27, 2024
Adweek recently published an article featuring Timothy Simcoe, Professor in Strategy and Innovation, discussing the ongoing antitrust case against Google.
Google argues that the Department of Justice (DOJ) misrepresents the competitive landscape of digital advertising by concentrating on “open web display advertising.” According to Google, this narrow focus fails to account for broader competition from mobile, social media, and connected TV platforms.
While the DOJ asserts that Google charges monopolistic rates, recent findings suggest that many other supply-side platforms (SSPs) have comparable or even higher fees. Simcoe presented evidence showing that the weighted average take rates for non-Google SSPs are approximately 16% lower than the 19.8% fee charged by AdX. However, some argue that these findings are skewed by the presence of a low outlier.
The case is currently under the jurisdiction of Judge Leonie Brinkema, who is expected to issue a ruling in the coming months.
