Enrique Dans

On the effects of technology and innovation on people, companies and society (writing in Spanish at enriquedans.com since 2003)

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Surprise, surprise, Google’s digital monopoly was the plan all along

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IMAGE: A big, fat business person in cmic style, sitting atop the world with the Google logo on his chest, and the word “monopoly”

Thursday’s court ruling declaring Google a monopoly in the online advertising technology market is making headlines, but for many of us, this verdict comes as no surprise; it’s merely confirmation of something we’ve known for years.

When Google bought DoubleClick for $3.1 billion back in 2007, some of us saw what was coming with absolute clarity (link in Spanish): this was the start of a calculated strategy to vertically integrate and dominate the entire online advertising ecosystem. I wrote about it in many occasions. This week’s federal court decision doesn’t reveal anything new — it simply makes official what’s long been obvious.

The monopoly was hiding in plain sight… for anyone who cared to look. Judge Leonie Brinkema’s ruling leaves little room for ambiguity: Google illegally monopolized both the publisher ad server and ad exchange markets, tying them together in a way that stifled competition, clearly violating Sections 1 and 2 of the Sherman Act. How did it pull this off? By acquiring key infrastructure (DoubleClick, Invite Media, AdMeld…), locking it down for use only with Google’s own tools, and consolidating to a staggering 90% market share in publisher ad servers by 2015.

This dominance wasn’t just a product of superior technology — though Google certainly had that…

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Enrique Dans
Enrique Dans

Published in Enrique Dans

On the effects of technology and innovation on people, companies and society (writing in Spanish at enriquedans.com since 2003)

Enrique Dans
Enrique Dans

Written by Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)

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