Government officials building an antitrust case against Google are investigating whether the company engages in tying, the practice of bundling different products together in a way that can block out competitors and give the seller an unfair advantage.
In recent months, the Justice Department and state attorneys general have asked executives at rival firms about the pricing and operations of Google’s Network division, according to people familiar with the discussions. This business sells services that handle almost every step a digital ad takes on its journey from a brand’s creative team to a consumer’s screen.
The inquiries focus on discounts, special features and other terms that Google offers to push advertisers and publishers to use only its products instead of mixing and matching with competing services. Regulators are also asking about how Google’s larger online search business interacts with the Network division to bolster its share of the digital ad market, the people said. They asked not to be identified sharing details of private discussions.
Tying makes the sale of one product conditional on the purchase of another product. This isn’t illegal, but if the strategy is used to cement a dominant market position, it could be, according to Gene Kimmelman, a senior adviser at think tank Public Knowledge and former chief counsel for the Justice Department’s antitrust division.
“If those tools are used to maintain a monopoly, prevent entry of new players and exclude rivals, then they may be antitrust violations,” Kimmelman said…
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