DOJ Alleges Google Used AdMeld Buy to Eliminate Rivals
Shocking new claims are being made by the US DOJ about Google and its constant fears of being overtaken by other competitive players in the market.
This time around, the case dates back to 2011 when the search engine giant was called out for seeing AdMeld as a threat and that’s what forced it to buy the company in the first place.
The purchase was just another step of how Google used its monopoly power and behavior to kill possible competition as revealed in the recent Justice Department trial. These measures were called out as killer acquisitions.
The DOJ alleged that Google has been purchasing nascent rivals for years and it all started with DoubleClick in 2008 and a few years later, it was AdMeld and Invite Media. The goal was to establish a leading position and limit competition in the online advertising tools market.
Now after they made the purchase for DoubleClick, Google workers debated if they wished to buy a company making management tools. This would assist websites take part in ad pricing maneuvers, and data analysis. Others included the likes of the Rubicon Project and AdMeld.
In another presentation made by the government and shown in a court of law, staff from Google spoke about dismissing such tech as irrelevant. However, they did detail more about how the tools were coming in the way of the company’s chances to entail more ad inventory on the website through the exchange program for ads.
Google bought AdMeld for nearly $400 million and that too after it integrated the tech into the firm’s ad exchange and then closed the product sooner.
The DOJ alleges Google tried to showcase its mighty monopoly power in the ad market for tools that websites use for buying and selling ads online. Antitrust forces are trying to look for more ways by which Google can buy rival firms to strengthen its power in the advertising market of today.
A suggestion was made related to Google stepping up to the plate and buying leading products by choosing one that had the greatest traction and parking it at a certain place.
Following the court ruling, YouTube’s head Neal Mohan rejected claims that Google acquired AdMeld to eliminate competition, calling them baseless. He stated that AdMeld’s technology filled a significant gap in Google’s portfolio, which needed to be addressed promptly.
As per reports from the company’s own employees, AdMeld was worth a staggering $200M to $300M. It acknowledged how Google ended up paying between $100M more than the estimate for the company.
The company also tried to justify its other purchases and how it was designed to ensure fair market play and close any other gaps seen in the industry.
Image: DIW-Aigen
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