Does Google control the auction prices?

Yes, Google controls the ad auction, impacting advertisers through its management of information and auction dynamics, which includes setting price points during auctions to favor higher bids[1][3]. This control allows Google to influence ad prices significantly, as indicated by its market power and pricing strategies aimed at maximizing value extraction from advertisers[2][4].

Furthermore, Google's conduct limits competition, which can sustain higher ad prices than would exist in a more competitive environment. For example, less auction pressure from alternative platforms like Bing can lead to lower prices for Google Ads[4].