The Justice Department contends that Google essentially rigged the bidding in those auctions to favor its own products.
It happens in milliseconds, ideally, as you browse the web. Networks of computers and software analyze who you are, what you are looking at and buy and sell the advertisements you see on web pages.
The Justice Department contends that what Google has also done over the years is rig the automated auctions of ad sales to favor itself over other would-be players in the industry, and also deprived the publishing industry of hundreds of millions of dollars it would have received if the auctions were truly competitive.
And in between is the ad exchange, which matches the website publisher to the would-be advertiser by hosting an instant auction. Google said the system was necessary to ensure ads loaded quickly. If the computers entertained bids from every ad exchange, it would take too long. Professor Ramamoorthi Ravi, an expert at Carnegie Mellon University, said rules imposed by Google failed to maximize value for publishers and “seem to have been designed to advantage Google's own products.”
Google also says its innovations over the last 15 years fueled the improvements in matching online ads to consumer interests. Google says it was at the forefront of introducing “real-time bidding,” which allowed an advertiser selling shoes, for instance, to be paired up with a consumer whose online profile indicated an interest in purchasing shoes.
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