Thursday, June 20, 2024

U.S. Sues Google for Dominance Over Digital Advertising Technologies

Recently, the US Justice Department along with the eight states filed a lawsuit against Google, accusing the company of having a monopoly on the online advertising market, which they argue harms advertisers, consumers, and even the US government. 

They claim that Google has breached Sections 1 and 2 of the Sherman Act. While the goal of the suit is to break up Google’s control of the online advertising ecosystem. 

Here below we have mentioned other eight states that participated with the US Justice Department:-

  • California
  • Colorado
  • Connecticut
  • New Jersey
  • New York
  • Rhode Island
  • Tennessee
  • Virginia

It is alleged that Google is taking significant steps silently to eliminate competition in the online advertising space through several key acquisitions. In short, making it is challenging for advertisers to use other alternatives to its products.

The US economy relies heavily on free and fair markets, and monopolies threaten the foundations of these markets. This is a situation that limits innovation, hurts workers and producers, and increases consumer costs.

Google’s Dominance Over Digital Advertising

For over a decade, Google has allegedly engaged in actions that inhibit the growth of competing technologies and influenced the workings of online advertising auctions, thereby coercing advertisers and publishers to utilize its platforms.

This lawsuit alleges that the company has unfairly monopolized the way ads are served online by excluding competitors as part of its unfair business practices.

It has now become common practice for Google to control the digital tool that nearly all major website publishers use to sell advertisements on their sites or to monetize their sites.

Google’s revenue comes primarily from its digital ads, and in terms of revenue, Google is currently generating just over 80% of its revenue from digital ads.

Google’s Anticompetitive Conduct

The following are some of the anti-competitive practices that Google has been engaging in:-

  • Acquiring Competitors
  • Forcing Adoption of Google’s Tools
  • Distorting Auction Competition
  • Auction Manipulation

Publishers, advertisers, and competitors have been hindered in their adoption of alternative technologies as a result of Google’s anticompetitive practices.

The Sherman Act, a cornerstone of American antitrust legislation, has been staunchly upheld for over a century as a means to maintain a fair and open marketplace. 

This Act serves as a reminder of the dedication to economic freedom and fair competition, as the Department of Justice continues to enforce it against monopolistic practices to promote healthy competition.

The Department has filed a civil antitrust complaint asserting an antitrust violation under the Sherman Act for the first time in approximately half a century in a monopolization case.

The Department of Justice is taking action to address Google’s alleged monopolistic behavior. This includes not only seeking restitution for the American public but also seeking triple damages for any financial losses suffered by government agencies as a result of overpaying for web display advertising.

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Guru baran
Guru baran
Gurubaran is a co-founder of Cyber Security News and GBHackers On Security. He has 10+ years of experience as a Security Consultant, Editor, and Analyst in cybersecurity, technology, and communications.

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