financetom
Business
financetom
/
Business
/
US sues Google for using anti-competitive tactics in the online ad market for 15 years
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US sues Google for using anti-competitive tactics in the online ad market for 15 years
Jan 24, 2023 11:03 PM

The US Justice Department on Tuesday filed an antitrust lawsuit against Alphabet's Google alleging that the Big Tech company has sought to defeat its rivals in the online advertising business using anti-competitive tactics for 15 years.

The Justice Department and a group of eight states including Virginia, California, Colorado, Connecticut, New Jersey, New York, Tennessee and Rhode Island have filed a lawsuit accusing it of illegally abusing a monopoly over the technology that powers online advertising.

The lawsuit filed by the US government claims Google “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.”

The government alleges that Google's plan to assert dominance has been to “neutralise or eliminate” rivals through acquisitions and to force advertisers to use its products by making it difficult to use competitors' products.

Also Read | Google layoffs: Reduce headcount to 1.5 lakh, hedge fund billionaire tells Sundar Pichai

This includes its 2007 acquisition of DoubleClick, a dominant ad server, and subsequent rollout of technology that locks in the split-second bidding process for ads that get served on Web pages.

“Monopolies threaten the free and fair markets upon which our economy is based. They stifle innovation, they hurt producers and workers, and they increase costs for consumers,” Attorney General Merrick Garland said at a news conference Tuesday.

Garland added that for 15 years Google has “pursued a course of anti-competitive conduct” that has stalled the rise of rival technologies and manipulated the mechanics of online ad auctions to force advertisers and publishers to use its tools.

Also Read | Google layoffs: Heartbreaking stories of a mother-to-be and people who were with the company for decades

In so doing, he added, Google ”engaged in exclusionary conduct” that has “severely weakened,” if not destroyed, competition in the ad tech industry.

This is the second antitrust lawsuit filed by US officials against Google and the fifth major case in the US challenging the company’s business practices.

Also Read | IT layoffs 2023: From Microsoft, Amazon, Google to Wipro, a look at major job cuts in January

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Indigo embarks on inaugural Mumbai to Jakarta direct flight; promises new travel and tourism opportunities
Indigo embarks on inaugural Mumbai to Jakarta direct flight; promises new travel and tourism opportunities
Aug 8, 2023
In an exclusive conversation with CNBC-TV18's Daanish Anand, Vinay Malhotra, the Head of Global Sales at Indigo, shared insights about this venture into Indonesia. He expressed immense enthusiasm regarding the new opportunity for travelers to experience Indonesia's pristine beaches and highlighted Jakarta's dual role as both the national capital and a bustling trade and commerce hub.
Bumble declines as higher expenses fan concerns about Tinder competition
Bumble declines as higher expenses fan concerns about Tinder competition
Aug 8, 2023
Bumble shares fell four percent on Tuesday after the dating app owner forecast lackluster third-quarter revenue and posted a jump in expenses
MPL cuts workforce by half after 28% GST on online gaming
MPL cuts workforce by half after 28% GST on online gaming
Aug 8, 2023
In the email accessed by CNBC-TV18, Srinivas told the employees, “The new rules will increase our tax burden by as much as 350 percent-400 percent. As a business, one can prepare for a 50 percent or even a 100 percent increase, but adjusting to a sudden increase of magnitude means we need to make some very tough decisions.”
Adani Enterprises said to consider selling $2.7 billion Adani Wilmar stake
Adani Enterprises said to consider selling $2.7 billion Adani Wilmar stake
Aug 8, 2023
Adani Wilmar's share fell nearly 36 percent this year, valuing the company at around $6.2 billion. Adani-linked companies had lost more than $150 billion in market value at one point after US-based short seller Hindenburg Research leveled fraud allegations against the business empire, which were denied by the conglomerate, according to Bloomberg.
Copyright 2023-2025 - www.financetom.com All Rights Reserved