The US Department of Justice's lawsuit against Google for dominating digital advertising technology is said to be able to benefit companies like Apple, et al.
The US Ministry of Justice asked Google to divest Google Ad Manager, a line of software that allows websites to place ads on their pages, as well as software that can be used as an advertising marketplace.
This line of Google software is known for having various capabilities, including being able to match advertisers with advertisers through their marketplace, we were quoted as saying by Reuters, Sunday (29/1/2023).
Advertisers and advertisers will be in a better bargaining position with more options -- and also more competition -- (if the lawsuit is successful)," said Neil Begley of Moody's Investors Service.
One of the beneficiaries of this is Apple, which also has an advertising business but insists on prioritizing privacy issues. According to Brian Mandelbaum, CEO of ad tech company Attain, Apple could be a winner if Google's ads are not as effective as before.
He also added that Apple has the ability to become the dominant company in this sector, because Apple has data on cellphone ownership, the Safari browser, and application distribution via the App Store.
If Google is eventually forced to divestiture Ad Manager for advertiser space, competitors like Xandr -- which is owned by Microsoft -- will also benefit.
With more options than Google, advertisers can see the fair rates for advertising on their sites transparently, as well as increase revenue due to lower costs.
Meanwhile Paul Gallant, managing director at Cowen Washington Research Group, said that if this lawsuit is successful, it will be the beginning of a change in the business model for Google. Mainly because Google "lost" important data that allowed them to place ads according to the right targets.