Payouts Pulse (Edition 012): What Will Google’s Antitrust Battle Bring to the Digital Ad World? ??
In this month’s issue, we’re diving into the latest updates on Google’s major antitrust battle, the ongoing TikTok ban debate in the US, and how Hopeless Records is modernizing their royalty payout process with Trolley. ?? Here’s what’s keeping your finger on the pulse this month:
Google’s Second Antitrust Suit Brought by US Begins Over Online Ads
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The Department of Justice’s second major antitrust trial against Google?began on September 9, just one month after a judge found the search engine illegally cornered the market for online search.
This time, the tech giant is being accused of monopolistic behavior in the digital advertising industry. And unlike the first case, the justice department is seeking specific remedies this time, where Google would be forced to break up parts of its business and divest some of its advertising technology.
Website publishers rely on Google's ad technology to connect them with advertisers, acting as a middleman. Google allows sites to sell ad space on their pages and enables advertisers to reach potential customers, while taking a significant share of the ad revenue from both parties.
Although there is nothing illegal about this model on the face of it, the justice department claims that Google has built a monopoly through ruthless anticompetitive maneuvers.
Bottom line: The outcome of this case could have far-reaching implications for Google’s primary source of revenue as well as the tech industry and online publishers.
Why we care: This is the case to watch to get an idea of what online advertising will look like for the rest of the decade.
If Google comes out on top, we’re likely to see their practices remain the same, prices hold (if not rise), and other major tech players work to consolidate advertising revenues.
If the government wins, Google will be forced to become just an also-ran in a market it currently dominates. While it’s like reading tea-leaves at this point, industry insiders predict that tech leaders will need to rethink their current strategies (possibly ending many of their previously free products), advertisers will gain the benefit of competitive pricing, and the DOJ may be emboldened to further regulate the tech space.
Key quote: “Google’s monopolies in each of these separate markets was no accident but rather the result of a campaign to condition, control, and tax digital advertising transactions over 15 years,” the justice department said in a pre-trial filing. “This campaign was exclusionary, anticompetitive, and mutually reinforcing”.
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USA Today article | The Consumer Financial Protection Bureau is considering whether early-pay programs should be classified as loans. This could reshape how companies offer early wage access. Many states have caps on how much interest lenders can charge on loans, and if enacted, the fees charged to employees using the programs would move the interest rate above state caps.
BBC News piece | The ongoing debate over the proposed US law that would ban TikTok unless it is sold by ByteDance rages on. A panel of three judges heard the company’s arguments at an appeals court last week, where TikTok argued that the law would have a “staggering” impact on the free speech of its US users.?
Digiday story | The creator economy is booming—projected to be worth $480 billion by 2027—and creators behind viral moments are looking for ways to stretch their 15 minutes of fame. This means expanding beyond social media into trademarks, products, and podcasts. For companies working with freelancers and influencers, it shows the growing need to support creators as they diversify their income streams.
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What's new at Trolley
Hopeless Records is celebrating their 30th anniversary this year, and embracing the future by partnering with Trolley to streamline their accounts payable and royalty payout processes—including crucial end-of-year 1099 filings. ?? Making this switch has freed up more time for the team to focus on supporting their artists and community.
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?Navigating royalty payments in today’s complex global music economy is no small feat. ?? Royalty calculators simplify and streamline the process, saving you time and ensuring accuracy across all revenue streams. Want to better understand how these tools work? Dive into our latest blog.
Pulse playlist
In every issue of The Payouts Pulse, we share some of our favorite tunes at the moment. We’re throwing it back this month with this 90’s alternative playlist. Think The Smashing Pumpkins, Foo Fighters, Hole, Pixies, etc. ??
Ask an expert
?Al Person, Chief Financial Officer of Hopeless Records, has been at the forefront of transforming the label's financial operations. Reflecting on the recent addition of Trolley to their tech stack, Al emphasizes the importance of efficiency and care in supporting their artists:
"Adding Trolley has really improved our processes. We've had other payment systems that were very segmented, but now, having everything in one place is a huge improvement.
The process of porting over royalty payouts to Trolley was very fast and easy. Compared to spending two weeks cutting checks and handling various payments, using Trolley takes only about a day of my work. It’s a significant improvement.
Trolley gives us more control over the process so we maintain great relationships with our vendors and artists by owning this in a tool that makes it manageable."
Anything you’d like to see in future issues?