Ad Tech Briefing: Regulatory storm clouds gather and scatter over Big Tech, and indies count the cost

Regulatory storm clouds gathered over the ad tech industry as Amazon, Google, and The Trade Desk faced scrutiny. Amazon's auction mechanics were under investigation for allegedly pushing prices closer to advertisers' maximum bids while presenting its system as a second-price auction. The Federal Trade Commission and 22 state attorneys general claimed the practice artificially increased winning advertiser prices without an equivalent bid from a genuine competitor.

Over 80% of auctions were allegedly affected by 2024, generating tens of billions of dollars in additional charges. Amazon denied these allegations, stating bids were just one factor in ad placement decisions and that costs remained flat during the period in question.

The week saw a setback for Google, whose ad tech antitrust trial culminated in a remedies ruling. Justice Leonie Brinkema, who deemed Google a monopolist twice within a year, rejected a breakup but instead implemented behavioral remedies. The decision suggested limits on Google's ability to self-preference, publisher data-sharing, and nondiscriminatory treatment of rival ad tech platforms. While the ruling was seen as a win for Google, the specifics of the behavioral remedies were still under seal in mid-September.

Meanwhile, The Trade Desk, a key player for independent ad tech companies, announced it would cut 15% of its workforce. CEO Jeff Green attributed the restructuring to making teams smaller, faster, and more focused, but the move was viewed by many as a blow to the independent sector. The cuts, estimated at $51 million, aimed to position the company for its "next phase of growth" by focusing on ad buyers rather than owning media inventory.