As Google’s second antitrust trial this year continues, a Boston University economist testified that Google’s stranglehold over the advertising market allows it to charge between 19 and 27 percent higher rates to advertisers than a “competitive market” would allow.
The DOJ further argued that this reliance on AdX also comes at a cost to advertisers. Expert witness Timothy Simcoe, an economist from Boston University, presented research indicating that AdX overcharges advertisers by 19% to 27% compared to what would be expected in a competitive market. Throughout the trial, internal documents and emails from Google employees have been presented, highlighting concerns about the exclusivity of AdX. As early as 2011, Google began developing a tool called AWBid to open up the platform and allow more exchanges to bid on Google’s inventory. However, the tool was eventually limited to retargeting campaigns and accounted for only a small portion of Google’s advertising business.
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