The U.S. Department of Justice sued Alphabet-owned Google on Tuesday, accusing it of abusing its dominant position in the digital advertising business, with Google facing the government’s latest blow to ad manager his package. should be forced to sell. Market Power Big Tech.
The lawsuit concerns Google’s business, which generates 80% of his revenue. The Justice Department has filed a lawsuit to force Google to sell its ad tech business.
“Google has used anti-competitive, exclusive, and unlawful means to eliminate or substantially mitigate threats to its supremacy in digital advertising technology,” the antitrust complaint states.
In response to the lawsuit, Google said the government “replicates a flawed argument that slows innovation, drives up advertising costs and makes growth difficult for thousands of small businesses and publishers.”
The federal government says it seeks to level the playing field for tech giants such as Amazon.com, Facebook owner Meta Platforms and Apple Inc.
The lawsuit from the administration of Democratic President Joe Biden was filed Tuesday following a 2020 antitrust lawsuit filed against Google during the presidency of Republican President Donald Trump.
The 2020 lawsuit, which alleges antitrust violations in how the company gained or maintained a dominant position through its online search monopoly, is due to go to court in September.
On Tuesday, eight states, including Google’s home state of California, joined the Justice Department lawsuit.
Google shares fell 1.6% on Tuesday.
The lawsuit alleges that “Google seriously sabotaged competition and stifled innovation in the digital advertising industry.”
In addition to its well-known free search, Google makes money from its interconnected advertising technology. This connects advertisers to newspapers, websites, and other businesses that want to host them.
Advertisers and website publishers have complained that Google lacks transparency about where their ad dollars go, specifically how much goes to publishers and how much goes to Google. I’m here.
The company has made a number of acquisitions, including DoubleClick in 2008 and AdMob in 2009, to become a dominant player in online advertising.
“Project Poirot”
While Google remains a long-term market leader, Google’s share of U.S. digital ad revenue has fallen from 36.7% in 2016 to 28.8% last year, according to Insider Intelligence.
The Justice Department has asked a jury to decide on a lawsuit filed in Virginia.
The lawsuit outlines Google’s numerous attempts to dominate the advertising market, with the government claiming the company has “technical tools to deal with threats.”
The complaint discussed Headline his bidding, which allows companies to bypass Google and bid for ad space on their websites.
Leave a Comment