US Department of Justice’s complaint against Google due to monopoly in advertising

US Department of Justice's complaint against Google due to monopoly in advertising

Google is facing a lawsuit from the US Department of Justice and eight states over its alleged monopoly in the digital advertising market. According to the petition filed in It was presented on Tuesdaythey have accused Google of abusing “monopoly power” to the detriment of websites and advertisers who use other advertising tools.

  • Alphabet’s revenue of $39.28 million in the third quarter, with an 83 percent contribution from Google ads

This petition states:

“Google’s anti-competitive behavior has raised barriers to entry to artificial levels, forced key competitors out of the ad technology market, deterred potential competitors from entering the market, and marginalized Google’s few remaining competitors and unfairly exposed to loss.

Anti-competitive behavior or innovation and very high technical ability

It went on to claim that Google’s various acquisitions allowed it to “neutralize or eliminate” competitors and continued to “force” other companies to use its tools. According to government lawyers, when you add up the alleged anticompetitive actions, “these related and interdependent actions have had a cumulative and synergistic effect that has harmed competition and the competitive process.” In addition, the US Department of Justice says that Google “pockets, on average, more than 30 percent of advertising dollars that flow through its digital ad technology products.”

1674640586 693 US Department of Justices complaint against Google due to monopoly US Department of Justice's complaint against Google due to monopoly in advertising 2

What was Google’s response to these claims?

Google in Post on your blog responded to this complaint and argued that the Justice Department’s request to “reopen” two previous purchases from more than a decade ago is an attempt to “rewrite history at the expense of publishers, advertisers and Internet users.” It also goes on to say that the Department of Justice will “specify” how its advertising products work, noting that Google customers It does not force you to use its products And people “choose to use them because they work.” The company points to other companies that are also moving into the advertising industry, including Microsoft, Amazon, Apple and TikTok.

Dan Taylor, Google’s vice president of global advertising, writes:

‚ÄúToday’s lawsuit from the DOJ is trying to pick winners and losers in the highly competitive ad tech sector. This is largely a repeat of a frivolous lawsuit by the Texas attorney general, much of which was recently dismissed by a federal court. The DOJ is doubling down on flawed reasoning that slows innovation, raises advertising costs, and makes it harder for thousands of small businesses and publishers to grow.

Google knew this would happen. Last year, the company tried to avoid a potential Justice Department lawsuit by proposing to spin off its ad auction business, which sells and places ads on customers’ websites, from Google’s digital advertising arm. But instead of making it a separate company altogether, in one move it has brought the division under the umbrella of Google’s parent company, Alphabet.

  • Proposal to separate the Google advertising department and transfer the sales unit to Alphabet

Obviously, this and other concessions reportedly offered by Google will not be enough to convince the Justice Department not to engage in anti-competitive practices. In this lawsuit, the lawsuit filed by the US Department of Justice asks the court to force Google to give up its advertising business. Eight states, including New York, California, Connecticut and Virginia, also signed the lawsuit.

Merrick B. US Attorney General Garland said in a statement:

“Today’s complaint alleges that Google has engaged in anticompetitive, monopolistic, and unlawful conduct to eliminate or substantially reduce any threat to its dominance of digital advertising technologies. Regardless of industry and regardless of company, the Department of Justice will vigorously enforce our antitrust laws to protect consumers, protect competition, and ensure economic fairness and opportunity for all.

easons in 2020, accused it of illegally monopolizing the search and advertising markets. At the time, the agency asked the court to “break Google’s dominance of search distribution so that competition and innovation can survive.” Earlier this month, Google filed a motion to dismiss the agency’s complaint alleging that Google uses its Android operating system and the public perception of the search market to further limit competition in the industry.

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The lawsuit is part of a broader government crackdown on big tech. Last May, a group of Senate Republicans and Democrats introduced the Digital Advertising Competition and Transparency Act. The bill could force companies like Google and Meta to divest their ad businesses because it would bar the companies, which process more than $20 billion in digital ad transactions annually, from participating in various parts of the digital ad industry.

what is your idea about this? Should the United States government allow Google to continue to expand its influence in the virtual advertising industry without any restrictions, or should it in any case prevent it from growing too much? Share your opinion with us.

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  • Google accepted a $267 million fine for its ad technology in France
  • India sued Google for abusing Android dominance

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