US sues Google for monopoly

Ministry of Justice United States of America sued Google for its dominance of the online advertising market, igniting a new legal battle against the tech giant based in California.

“Google used anti-competitive, exclusionary and illegal means to eliminate or seriously reduce any threat to its dominance over digital advertising technologies,” the lawsuit says.

The department and eight states, including California and New York, are asking the courts to find a California company guilty of violating competition law, order it to pay damages and order it to sell its online advertising space business.

The lawsuit accuses Google illegal content monopoly that it “undermined legitimate competition in the advertising technology industry”. “The damage is clear: website publishers make less money and advertisers spend more,” he says.

“Despite Google faced increased competition in recent years, its market share remains unrivaled,” says Evelyn Mitchell, Analyst insider intelligence.

The group receives more than a quarter of all digital advertising spending and more than half of the advertising revenue generated from online search, she said.

Advertising deals Google they generated over $200 billion in sales in 2021 and are parent company Alphabet’s largest source of revenue by a wide margin.

“Open Internet”

Google vehemently denied that he was monopolystating that competitors in the online advertising market are Amazon, Meta (owner of Facebook, Instagram and WhatsApp) and Microsoft.

The Department of Justice (DoJ) is trying to identify “winners and losers” in the digital advertising sector, which is “already very competitive,” a DoJ spokesperson responded. Google in an email.

The lawsuit “doubles down a flawed argument that will slow innovation, drive up ad fees, and hamper the growth of thousands of small businesses and publishers,” he added.

According to the Computer and Communications Industry Association (CCIA), which represents the industry, the Department of Justice should consider the entire advertising market, not just the digital part of it.

“The government’s assertion that digital advertising does not compete with advertising in print, radio, television and street signs is beyond explanation,” he said.

But for the Justice Department and eight states, the Internet is at stake. “An open and vibrant Internet is essential to American life,” the lawsuit says.

The plaintiffs allege that digital advertising is necessary to fund websites and that they are “bought and sold in bulk in a fraction of a second”, which is completely different from how print newspapers or television networks operate.

Confirm that Google he abused his dominant position to exclude competitors, in particular by “systematically seizing control of a wide range of high-tech tools used by publishers, advertisers and other market participants.”

“Google should be worried”

“In their quest for super profits, Google done a great disservice to online publishers and advertisers, as well as American consumers,” the Deputy Attorney General said. UNITED STATES OF AMERICA, Lisa Monaco, in a statement.

This is the second lawsuit brought by the Justice Department against the California group since the inauguration of President Joe Biden two years ago.

The first one, linked to the search engine domain, should be tested this year.

Google it has already been fined in the past for violating competition law, in particular by the European Union.

In the US, the company faced lawsuits filed in late 2020 by a coalition of states led by Texas. According to his accusations, Google sought to eliminate competition by manipulating sales at advertising auctions.

“Google “That should worry us,” says analyst Mitchell. “The company may be forced to sell part of its advertising business.”

Biden recently called on Republican and Democratic lawmakers to agree on rules to better regulate the tech giants. (AFP)

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