The US v. Google antitrust trial entered its second week, with the Department of Justice questioning Neal Mohan, CEO of YouTube and a longtime Google advertising executive. The central question is whether Google bought its competitors to eliminate them from the online advertising market.
Mohan argued that Google’s acquisitions were not meant to destroy competition but rather to improve its own products. He explained that “parking” refers to integrating an acquired company into Google’s technology stack, allowing it to continue operating while being rebuilt and integrated.
The Justice Department pointed to an email exchange about Admeld, a company with innovative yield management technology, which Google acquired in 2011. The email suggested that Google planned to buy Admeld to eliminate the competition. Mohan countered that this was not evidence of Google’s intent but rather its strategy for integrating the acquired company.
Mohan testified that the goal is always to build the best advertising stack for publishers and advertisers. He emphasized that the online ad business has always been competitive, with companies like Facebook, Microsoft, and Yahoo attempting to build similar strategies.
Google’s attorneys had Mohan reiterate his points several times during cross-examination. Mohan explained that incorporating startups at Google is like changing the engines on a plane while continuing to fly it.
The trial highlights the differing views of Google’s business practices. The government sees Google as having an insurmountable advantage in the ads business, built on illegally tying products together and buying up potential competitors. Google, on the other hand, argues that deep integration is necessary for building great ad products in a competitive space.
Ultimately, Judge Leonie Brinkema will decide whether Google’s “parking” strategy was legal or illegal.
Source: https://www.theverge.com/2024/9/17/24247066/neal-mohan-us-v-google-testimony