February 28, 2023
Google and Digital Advertising
The Department of Justice (DOJ) recently announced an investigation into Google’s business practices in the digital advertising market to determine whether the company has unfairly stunted competition and harmed competitors and consumers. In a new insight, Technology and Innovation Policy Analyst Josh Levine discusses this and a similar state case against Google’s allegedly anticompetitive activities, and cautions lawmakers against rushing to legislate.
- Critics of large technology firms’ digital advertising practices argue that a few companies can dominate the market and act in monopolistic fashion; these claims have proved persuasive enough to allow cases against Google to proceed.
- While these cases could provide clarity on Google’s specific conduct, the digital advertising market overall provides myriad benefits to both consumers and the economy in the form of innovation, falling prices, and increased spending.
- In light of these market conditions, lawmakers and regulators should wait until the conclusion of the cases against Google before attempting to address anticompetitive conduct in the broader digital advertising market.