What Does the Google Antitrust Verdict Mean for Your SEO and Paid Media?

Google has been in the news lately thanks to its antitrust trials, one of which ended with a judge ruling the company as an illegal monopoly in the search market. Many digital marketers and businesses are asking what Google’s legal woes mean for their digital marketing strategies like SEO and Paid Media.

OuterBox has been keeping a pulse on the proceedings. In this guide, we explain what an antitrust trial is and why Google is in hot water. Plus, we explore what this monopoly ruling and upcoming decisions could mean for your online marketing.

What is an Antitrust Trial?

The “trust” in antitrust points to a group of companies entangled in mergers, acquisitions, and other agreements that create a monopoly, meaning competition in the same market has little chance of increasing their share. An antitrust trial starts with a class-action lawsuit filed by individuals or organizations when state and federal laws meant to stop anti-competitive business dealings have been overlooked.

In Google’s case, the Department of Justice (DOJ) brought forth charges accusing the company of violating the Sherman Antitrust Act of 1890 by using its power to limit competition. How did the DOJ use a century-old law in the digital age, especially for a free search engine? This law focuses on the effects of business dealings deemed anti-competitive, and while free, the vast user data collected effects paid media and the AI race.

Google’s Antitrust Trials

The first antitrust trial looked back as far as 2010, alleging Google spent billions of dollars on exclusive contracts with companies like Apple and Android to make it the default search on browsers and devices. Google denied this stating it stays on top thanks to user choice and not its default dealings. Starting in September 2023 and after closing arguments in May 2024, the court ruled in August that while already dominant before the default deals, these deals led to a monopoly in search.

“In 2009, 80% of all search queries in the United States already went through Google. That number has only grown. By 2020, it was nearly 90%, and even higher on mobile devices at almost 95%. The second-place search engine, Microsoft’s Bing, sees roughly 6% of all search queries—84% fewer than Google”.

• UNITED STATES OF AMERICA et al v. GOOGLE LLC – 1:20-cv-03010

Google says it will appeal, and additional proceedings to determine consequences are coming soon, so outcomes are months away.

The court also decided that Google abused its dominance by utilizing user data to reinforce market dominance over search-related advertising. A second case examines Google’s search advertising technology, alleging Google violated federal antitrust laws by constructing a monopoly on the technology powering online advertising. U.S. District Judge decided the case has to go to trial, which will begin September 9, 2024. The judge, not a jury, will decide.

Google’s Monopoly Ruling and Paid Media

Search ads make up 60% of Google’s total revenue and brought in over $100 billion in 2020. Part of this business is ad auctions or how companies can pay to get their content tied to a keyword at a more favorable position. These auctions came under fire during the antitrust trial.

Google’s Vice President of Advertising Products testified that advertising auctions are adjusted to meet revenue targets versus how users search, including price increases of 5% to 10% over the past few years. This testimony noted the company’s concern about Amazon’s advertising services, which is growing at twice the rate of retail advertising. At a certain point, the ad auction process was changed so that the second-highest bidder would win the top advertising slot and the first taking the second spot. Users were not notified of the price increases or this change in the auction.

Despite Google preemptively paying damages to the government and securing a judge’s verdict over a jury decision, Google’s next trial concerning advertising technology may result in the company being forced to sell its ad manager suite. Regardless of the outcomes of Google’s paid media practices and advertising technology, businesses will need a partner who is well-versed in the platforms to keep a close eye on Google Ads and Google Shopping to avoid budget creep and to ensure money spent results in conversions.

Possible Antitrust Verdict Outcomes

The consequences of these antitrust trials won’t change the importance of user experience and fulfilling search intent with helpful content in your digital marketing strategies. If the market share gap starts to close, then a greater focus on how your business shows up in Bing and other competitor search engines will be needed. However, the customer and the helpful content they want remain king.

New logos for ad platforms may be introduced if Google is required to break apart from some of its brands, but like SEO, more resources may be required for competitor platforms. The need for a dedicated agency versed in Google and Microsoft offerings has never been greater.

OuterBox will continue to follow the proceedings to keep you updated. If you have any questions about the Google Antitrust Trial, contact us for more information and advice on your digital marketing strategy.