US sues Google for dominating the online advertising market
The US Department of Justice sued Google on Tuesday. dominance of the online advertising market Opens a new legal battle with tech giants in California.
A federal antitrust lawsuit accuses Google of illegally maintaining a monopoly that has “Destroy legitimate competition in the ad tech industry.”
“Google uses anti-competitive, exclusionary and unlawful means to eliminate or significantly reduce the threat of its dominance over digital advertising technologies,” the lawsuit adds.
The lawsuit was launched by the US Department of Justice (DOJ) along with eight states: California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee and Virginia.
Central to this case is Google’s dominance over the ad technology business. which is a technology that companies Rely on it for their online advertising needs.
Prosecutors said Google “now controls” a significant sector, meaning website builders earn less and advertisers pay more. While innovation is hampered by a lack of competitors.
“In the pursuit of excessive profits, Google has inflicted enormous damage on online publishers and advertisers. including American consumers,” Deputy U.S. Attorney Lisa Monaco said in a statement.
The federal lawsuit comes after a series of lawsuits against Google alleging it has dominance in online search markets. advertising technology and apps on Android mobile platform illegally.
Google has vehemently denied it is a monopoly, saying its competitors in the online advertising market include Amazon, Facebook owner Meta and Microsoft.
“Today’s lawsuit from the DOJ seeks to pick winners and losers in the competitive advertising technology sector,” a Google spokesperson said in an email.
The lawsuit “is multiplying flawed arguments that slow innovation, increase ad costs, and make it harder for thousands of small businesses and publishers to grow,” Google added.
Computer and Communication Industry Association The major tech lobby said the lawsuit did not take offline competitors into account. This includes newspaper, TV and radio ads.
“The government’s argument that digital advertising cannot compete with print, broadcast and outdoor advertising is unreasonable,” the CCIA said in a statement.
The United States is home to global tech giants Google, Apple, Amazon, and Meta, and largely depends on the courts to control their jurisdiction.
earlier this month President Joe Biden has called on Republican and Democratic lawmakers to break political barriers and pass legislation that would impose tougher rules on big tech.