YouTube CEO defends Google in US AdTech antitrust case

Another lawsuit against Google for possible antitrust practices is currently underway. The DOJ accuses it of, among other things, buying up potential competitors to get rid of threats in the market. They also say that Google is involved in all the main parts of the adtech stack. However, YouTube’s CEO defends Google from the accusations by offering his perspective on the facts.

If you aren’t aware, the state’s lawsuit against Google is based on acquisitions of competitors that would have allowed it to obtain its current dominant position. The lawsuit touches on acquisitions of companies such as DoubleClick and Admeld. The DOJ claims that Google used a policy of buying and “parking” to get them out of the way. As a result, Google would have taken over the three main parts of the adtech stack. The latter is the collection of technologies and tools designed to place ads on websites.

YouTube’s CEO sides with Google in AdTech antitrust case

However, Neal Mohan, the CEO of YouTube, says that things are different than what the DOJ thinks. The lawsuit cites the term “parking” from an email exchange concerning the acquisition of Admeld, a company that facilitated simultaneous demand analysis across various ad exchanges for publishers. “One way to make sure we don’t get further behind in the market is picking up the [company] with the most traction and parking it somewhere,” a Google executive stated in the emails. So, the plaintiffs allege that “parking” refers to buying up competitors and shutting down their operations.

However, according to Mohan, the term “parking” actually refers to acquiring a company and letting it continue to operate while integrating into Google’s structure. Mohan compares the process to “changing the engines on a plane while continuing to fly it.” Today, Admeld technologies are part of Google’s AdX platform.

The YouTube CEO also defends Google’s approach to taking over the main components of the adtech stack. These include the underlying system for using and offering ads, the system for buying and placing ads, and the exchange where all ad-related transactions occur. Mohan says that controlling all parts of the process is essential to ensuring an effective ad system. He asserts that this enables oversight of the placement of ads on appropriate websites and optimizes the process.

US government would seek less control from Google over the adtech stack

The US government does not like Google’s “total control” approach over its main AdTech services. They believe that linking all of Google’s services together offers an advantage that no one else can access. The lawsuit also alleges that Google’s dominance has led to a situation where it is virtually impossible for publishers to leave the platform. Plus, publishers have complained that Google’s advertising products have stagnated. The latter is generally a product of a lack of competition.

The trial will take a few more weeks before reaching a conclusion. Judge Leonie Brinkema’s verdict could set a precedent that will change the online ads industry forever.