DOJ: Google's Buyout of Online Ads Giant DoubleClick Started Its 'March to Monopoly'

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DOJ: Google's Buyout of Online Ads Giant DoubleClick Started Its 'March to Monopoly'
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The DOJ claims in a recent lawsuit that Google’s 2007 acquisition of internet advertising giant DoubleClick was the beginning of the company’s alleged ad monopoly.

, which claims that Google’s 2007 purchase of ad-tech startup DoubleClick was the “first step in Google’s march to monopoly” and that the company now holds a monopoly position in the $626.9 billion global digital ad market.According to the complaint, Google had difficulties launching its own ad server, which would have allowed it to place advertisements on other websites, and difficulties cultivating relationships with major advertisers before the DoubleClick deal.

The government claims that Google increases its prices for advertisers and takes a more significant cut of publisher revenue in order to favor its own products. The complaint claims that the company retains at least 30 cents of every dollar advertisers spend using Google’s digital advertising tools. Critics contend that Google’s market dominance actually hurts consumers because they must pay inflated prices to cover the expenses brands incur for their advertising.

Google claims that it faces a lot of competition and that the Justice Department’s case mirrors one that a group of state attorneys general, led by Texas, brought against Google. The company also mentions that, at the time the DoubleClick deal took place, the federal government gave its approval.

According to Eric Franchi, a general partner at AperiamVentures, a venture firm that invests in ad-tech and marketing startups, the divestiture of portions of Google’s ad business would open up significant opportunities for new entrants. According to Fiona Campbell-Webster, chief privacy officer for advertising platform MediaMath, spinning off some of Google’s ad-tech products could improve publisher margins and increase advertisers’ reach.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter

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