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Google seeks to reassure staff after US antitrust ruling on ad tech: Report
Alphabet-owned Google has sought to reassure employees following a US court ruling that found the company had illegally maintained dominance in parts of the online advertising technology market, Axios reported.
In a memo circulated internally, the technology major acknowledged the judge’s conclusion that Google had leveraged its market position to stifle competition, harm publishers, and limit consumer choice. The court found the company had monopolised two segments of the digital advertising business by engaging in anticompetitive conduct.
Lee-Anne Mulholland, vice president of regulatory affairs at Google, described the ruling as a mixed outcome in the United States Department of Justice’s (DOJ) lawsuit against the company.
“The court delivered a mixed ruling in the DOJ’s lawsuit focused on some of our ad tech. It rejected key parts of the DOJ’s case: The court found our advertiser tools do not harm competition and our acquisitions of DoubleClick and AdMeld were not anticompetitive. But it agreed with the DOJ’s claims about one of our publisher tools. In other words, we won half, lost the other half,” Mulholland said in the memo, according to Axios.
Advertising remains Google’s primary revenue stream, forming the financial backbone of its investments in emerging areas such as artificial intelligence (AI) and cloud infrastructure. The ruling, which the company has indicated it will appeal, could have far-reaching implications for its ad tech operations depending on the remedies determined by the court.
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The report added, Mulholland reiterated Google’s intention to challenge the decision, which she argued misinterprets legal precedent. “The ruling incorrectly suggests that a company like ours has a legal obligation to do business with competitors — a position that contradicts prior Supreme Court decisions,” she said.
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She also urged employees to stay focused amid the legal proceedings. “We remain deeply committed to offering solutions to a broad range of publishers and advertisers in a highly competitive market. It’s important for Googlers to stay focused on our users and customers by continuing to build exceptional products that serve people around the world,” she added.
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