Google’s Alleged Antitrust Actions Impacting Publishers
According to the Department of Justice, Google made changes to its publisher ad product that it knew would cause backlash from online websites selling ad space. The DOJ claims that Google implemented these changes to regain control in the ad tech market.
The DOJ presented evidence, including testimony from a former Google executive, internal company emails, and a recording of a tense 2019 meeting with Google’s publisher customers. This evidence painted a picture of Google ignoring customer preferences to strengthen its own business position, knowing that customers had limited alternatives. Google’s attorneys argued that they did listen to customer feedback and made some adjustments, although the core change remained.
One significant change was the introduction of unified pricing rules (UPR). Before UPR, publishers could set different floor prices for different ad exchanges when selling ad inventory through a publisher ad server. However, with UPR, publishers were required to set the same floor price for every exchange. This move limited the control publishers had over pricing.
During a meeting in April 2019, publishers expressed dissatisfaction with UPR, stating that it was not in their best interests. Google executives acknowledged the challenges in rolling out UPR and recognized that it would face pushback from publishers.
Google defended its actions, stating that the changes, including UPR, were aimed at improving transparency and fairness in the auction process. The company claimed that publisher feedback was taken into account during the rollout and that revenue for publishers increased as a result.
In an attempt to soften the impact of UPR, Google announced other changes alongside it, such as switching to a first-price auction. The DOJ suggested that this bundled announcement was a strategy to mitigate the negative effects of UPR on publishers.
Ultimately, the case highlights the power dynamics in the ad tech market and the challenges faced by publishers in navigating their relationships with dominant players like Google.
