Case 1:23-cv-00108 Document 1 Filed 01/24/23 Page 3 of 153 PageID# 3
Table of Contents
I.
Introduction ......................................................................................................................... 1
II.
Nature of this Action
........................................................................................................... 4
III.
Display Advertising Transactions
..................................................................................... 16
A.
How Ad Tech Tools Work .................................................................................... 16
B.
How Ad Tech
Intermediaries Get Paid
................................................................. 22
C.
How Publishers and Advertisers Select Ad Tech Tools
....................................... 24
D.
Why Scale and the Resulting Network Effects are Necessary to Compete in
Ad Tech
................................................................................................................. 26
E.
How Multi-Homing Enables Competition in the
Ad Tech Stack
......................... 28
IV.
Google’s Scheme to Dominate the Ad Tech Stack
........................................................... 30
A.
Google
Buys Control of the Key Tools that
Link Publishers and Advertisers
..... 31
B.
Google
Uses
Its Acquisitions and Position Across the Ad Tech Stack to Lock
Out Rivals and Control Each Key
Ad Tech Tool
................................................. 35
1.
Google Thwarts Fair
Competition by Making I
ts Google Ads’
Advertiser Demand Exclusive to Its Own Ad Exchange, AdX
................ 37
2.
In Turn, Google Makes
Its Ad Exchange’s Real-Time Bids Exclusive
to Its Publisher Ad Server
......................................................................... 43
3.
Finally, Google Uses
Its Control of Publisher
Inventory to Force More
Valuable Transactions Through Its
Ad Exchange
.................................... 46
4.
Google’s Dominance Across the Ad Tech Stack Gives
It the Unique
Ability to Manipulate Auctions to Protect Its Position, Hinder Rivals,
and Work Against
Its Own Customers’
Interests
..................................... 55
a)
Google Works Against the
Interests of
Its Google Ads’
Customers By Submitting Two Bids
Into AdX
Auctions
............. 57
b)
Google Manipulates
Its Fees to Keep More High-Value
Impressions Out of the Hands of Rivals
....................................... 60
C.
Google
Buys and Kills a Burgeoning Competitor and Then Tightens the
Screws
................................................................................................................... 65
1.
Google Extinguishes AdMeld’s Potential Threat
..................................... 65
2.
Google Doubles Down on Preventing Rival Publisher Ad Servers from
Accessing AdX
and Google Ads’ Demand
.............................................. 68
3.
Google Manipulates Google Ads’ Bidding Strategy
to Block Publisher
Partnerships with Rivals
........................................................................... 71
D.
Google Responds to the Threat of Header
Bidding by
Further
Excluding
Rivals and Reinforcing I
ts Dominance
................................................................. 72
i