The latest news regarding Google antitrust lawsuit shakes the technology world. On Tuesday, the Justice Department and eight states filed a Sherman Antitrust Act complaint against Alphabet, Google’s parent company. The file says it illegally abused its market dominance in digital advertising.
Google is a technology company which is based in the United States of America. It emphasizes consumer electronics, cloud computing, computer software, quantum computing, cloud computing, and internet advertising. Due to its market dominance, data collection, and technological advantages in the field of artificial intelligence, it has been called “the most powerful firm in the world” and one of the most valuable brands globally. Along with Microsoft, Amazon, Apple, Meta, and Apple, its parent firm Alphabet is regarded as one of the Big Five American technological corporations. However, the latest news hit the company as the Google antitrust lawsuit was filed by the Justice Department and eight states.
What are the details of the Google antitrust lawsuit?
The lawsuit seeks a ruling that Google engaged in illegal product-tying and monopolization of the publisher ad server and advertiser ad network markets in the United States. The Department of Justice and the eight states’ lawyers have prepared a file that is almost 150 pages and given brief explanations about what Google has been doing lately. One of Google’s spokespersons made a comment, which the full version of can be found below that a similar lawsuit was filed against the company before, issued by the Texas Attorney General. However, it was known that the Google antitrust lawsuit was going to be issued, as it was previously reported on Bloomberg.
“Today’s lawsuit from the DOJ attempts to pick winners and losers in the highly competitive advertising technology sector. It largely duplicates an unfounded lawsuit by the Texas Attorney General, much of which was recently dismissed by a federal court. DOJ is doubling down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.”
Statement by a Google spokesperson
The first lawsuit against Google to be brought under the Biden administration focuses on the company’s internet advertising business and demands that it sell off portions of it. In a previous action brought by the department in October 2020 during the Trump administration, Google was charged with allegedly abusing its dominant status to stifle competition in internet search through exclusionary contracts. The trial in that case is most likely to begin in September.
“One industry behemoth, Google, has corrupted legitimate competition in the ad tech industry by engaging in a systematic campaign to seize control of the wide swath of high-tech tools used by publishers, advertisers, and brokers, to facilitate digital advertising.”
A part from the 149-page lawsuit
In the three months that concluded on September 30, Google’s advertising division brought in $54.5 billion from Search, YouTube, Google Network ads, and other forms of advertising. The fact that Google’s advertising business engages in buying, selling, and ad exchange gives it a unique perspective on the process and potential power has prompted criticism. The business has often disputed its claim to control the online advertising market, citing the market share of some of its rivals. These causes made the coalition come together to file the Google antitrust lawsuit.
The federal government has examined other tech giant companies besides Google in the past. A case was filed for Microsoft’s proposed acquisition of Activision and also Meta is the target of two antitrust lawsuits before the Federal Trade Commission.
You can find more news about Google below:
- Google is allegedly developing a competitor against Apple AirTag
- Google cuts 6% of its workforce
- Elon Musk buys Google rumors explained