Google was sued by the US Department of Justice and 8 states for abuse of dominance by monopolizing the online advertising market.
Google is all over the news again: the subsidiary of Alphabet.inc has been denounced to theantitrust USA since Department of Justice it’s from 8 states federated.
States that have filed complaints through their attorneys general are California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee and Virginia.
Has Google cornered the online advertising market?
But why did the US government denounce the tech giant to theantitrust? According to the indictment, Google would be guilty of abuse of dominant positionwould seek, in fact, to exercise the monopoly of the online advertising market, violating the Sherman Law.
The purpose of reporting is to bring to light any unlawful behavior on the part of the Googlenamely with regard to the way in which the company manages the adverts.
In the press release issued by Department of Justice United States claims that, according to the indictment, Google would monopolize the market online advertising in the last 15 years since you bought DoubleClick.
This would be done by eliminating competitors from the online advertising market, primarily through acquisitions. As a result of this – in fact – publishers and advertisers were forced to use their services.
Within the complaint, it is explained that currently Google controls three digital tools of fundamental importance for the management of online advertising, which have allowed it to place itself in a position intermediary between publishers and advertisers.
The first is used by editors to sell advertising space on their websites; the second is used by advertisers to Purchase same; while the third is an exchange that allows you to manage auctions in real time.
According to the indictment, Google’s misconduct is fourfold:
- In the last years, Google repeatedly bought all competitors in the market that had the opportunity to challenge its position as a leader in the online advertising market.
- Google would force advertisers to use their own tools.
- The company allegedly distorted competition to block other exchanges.
- He would eventually manipulate the auctions to favor his products.
For fix to Google’s anti-competitive conduct, the Department sought fair compensation on behalf of the american audienceand triple the compensation for the damages suffered by the organs of the federal government who have paid dearly for web advertising.
Google denies all allegations
the answer of Google did not take long to arrive, the company has in fact denied the accusations. First, the statement states that the Department of Justice asked him to “dissolve two previously approved acquisitions” (DoubleClick and AdMeld), which in fact is not true.
The company led by Sundar Pichai then added that the government should not worry about “choosing who are the winners and losers in such a competitive sector”. Google’s statement goes on to cite other Big Techs that have invested in the online advertising sector with acquisitions in recent years, such as amazon AND Microsoft.
Google finally underlined that its services are essential to give more choice to players in the sector and that, if the Department of Justice if it got in the way, it would only harm the online advertising industry.
Source: Money It