Google was accused by the US of abusing its ad technology monopoly



U.S. officials have sued Google in recent years for anti-competitive practices in its search and app stores. John Taggart

The Justice Department and a group of eight states sued Google on Tuesday for illegally abusing its monopoly on the technology that powers online Google ad company, one of the world's largest internet companies.

Brokers use to facilitate digital Google advertising company ." We are doing business,” he claims. It's profitable," he claims. It forced competition. interfered.

The lawsuit was filed in the United States District Court for the Eastern District of Virginia over many of the various ad technology products, including software for buying and selling ads, marketplaces for completing transactions, and services for displaying ads around the world. filed. filed a lawsuit. ordered to sell. I asked Google to force me to sell it. the internet. The case also asked the court to stop the company from engaging in allegedly anti-competitive practices.

This is his fifth antitrust lawsuit filed against Google by U.S. authorities since 2020 and has seen legislators and regulators around the world take massive steps against online information and commerce. filed a lawsuit. I've seen them attack big tech companies. You are trying to hold back your power. In Europe, companies such as Amazon, Google, and Apple face antitrust investigations and prosecutions, while regulators enact new laws limiting some practices such as social media harm and data collection. is enacting. is enacting. passed.

In the US, Google faces special scrutiny. In 2020, a group of states, mostly in Texas, filed an antitrust lawsuit over advertising technology. Meanwhile, the Department of Justice and another group of states have separately sued Google for abusing its dominance in online searches. cause

William Kovacic, former chairman of the Federal Trade Commission, said the new lawsuit "adds another important issue to Google's efforts to deal with regulators around the world." I'm here. I am here. To tell. He said. "He may experience one or more of these challenges and achieve his goals."

Google spokesman Peter Schottenfels said the lawsuit "seeks to pick winners and losers in the highly competitive ad tech space." He said this mirrors "baseless" lawsuits led by the state of Texas in 2020, adding that the Justice Department's latest lawsuit made flawed arguments that slowed innovation and hurt publishers. added. In addition, he added that there is

The Biden administration is using insane legal theories to shatter the wings of America's largest corporation, the F.T.C. I was. The agency also contested the $69 billion acquisition of video game publisher Activision Blizzard by Microsoft.

These efforts are expected to meet stiff resistance in federal court. For decades, judges have agreed that antitrust violations should be determined primarily by whether to raise prices for consumers. F.T.C. He said he was willing to lose a lawsuit that pushed the boundaries of the law and put the spotlight on U.S. companies.

Tuesday's lawsuit describes Google's campaign to monopolize advertising technology and exploit its dominance to the detriment of publishers, advertisers, and ultimately consumers.

The Justice Department and states, including New York and California, said Google built a monopoly by buying essential tools for serving ads to publishers. As a result, advertisers are paying more for space on the internet, and publisher revenues are declining.

DOJ described internal Google documents and other evidence it believed could help prove its claims. In the complaint, the agency said one of Google's advertising executives questioned the company's market dominance, saying "The more serious the problem, the worse it gets." "Goldman or Citibank on the New York Stock Exchange.

The lawsuit echoes claims made in a lawsuit filed by Texas and 14 other states and territories over Google's advertising technology in 2020. The lawsuit received mixed responses in court. In September, a federal judge in New York ruled that some lawsuits could move forward, but said the state was anti-competitive. Denied alleged Google-Facebook deal…

Google's search engine has long been the center of revenue, but Google's ad technology division is solidifying itself as a one-stop-shop for advertisers. Her two businesses have given the company significant advantages in online advertising pricing. Due to the tight integration of Google's various advertising tools and platforms, forced selling can be a painful and difficult process for the company.

Google's parent company, Alphabet, is set to release its fourth-quarter results on February 2, amid a slowdown in the online advertising market.

Google has been adding to its online advertising tools for years. His $3.1 billion acquisition of advertising tool maker DoubleClick in 2007 expanded the reach of an already powerful digital advertising machine. With DoubleClick, Google has played an important role in the Internet. It provided a marketplace for publishers and allowed Google to host more ads on their sites on the web.

At the time, Google had $16.6 billion in annual revenue, most of which came from its search engine business. The company's ad tech division will generate $31.7 billion in revenue by 2021, making it its second-largest business unit after its flagship search engine. By the first three quarters of 2022, this unit's sales reached $24.3 billion.

Online publishers have long accused Google of dominating the digital advertising ecosystem and unfairly profiting from the sites where their ads appear.

One of his groups representing publishers, including The New York Times Company, said he would allow the site to jointly negotiate advertising terms with Google and other of his platforms online. he was requested to parliament. jobs. I was. Such adjustments are generally illegal under antitrust laws. The publisher's efforts have so far been unsuccessful.

In addition to publishers and advertisers, DOJ says Google's tight control over the ad tech market is hurting users on the internet as well. They claimed they had fewer resources to create content for their visitors.

On Friday, Google announced it would furlough 12,000 employees, or 6% of its workforce, in response to a slowdown in the digital advertising market. The company said the cuts would allow it to prioritize projects involving artificial intelligence, an area that has gained momentum in Silicon Valley in recent months.


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