The Department of Justice (DoJ, its acronym in English) of the USA filed Tuesday against Google, for “monopoly” in the market of online advertising, according to a court document.
“Google used anti-competitive and illegal methods to eliminate, or drastically reduce, any threat to its dominance over the technologies used for digital advertising”, advanced the DoJ.
The Department and eight states, such as California and New York, want the Californian group to be convicted of breaching competition law and obliged to compensate damages and to cease its activities related to the sale of commercial space online.
The complaint states that Google controls both the technologies used in “almost all websites” to sell advertising display locations, as well as the instruments used by advertisers to buy these spaces, as well as the market where transactions take place.
“The losses are clear: website editors earn less and advertisers spend more”, ensured the plaintiffs.
“Although Google has faced increased competition for a few years now, its market share remains unrivaled,” said Evelyn Mitchell, an analyst at Insider Intelligence.
According to this analyst, the group collects more than a quarter of all digital advertising expenses and more than half of the advertising revenues allocated to online search.
Google has already hit back, with a spokesman saying the DoJ “seeks to designate winners and losers” in the already “highly competitive” digital advertising industry.
More added that if the DoJ wins, its approach “will slow down innovation, increase advertising costs and make it harder for thousands of small businesses and publishers to grow.”
Google has already been fined for breaching competition law, namely by the European Union.
In the US, the company is already facing lawsuits launched in late 2020 by a coalition of states, led by Texas.
According to these allegations, Google sought to eliminate competition by manipulating advertising sales.
Google must be worried”, considered Evelyn Mitchell. The company “could be forced to sell part of its advertising activity”.
President Joe Biden recently called on Republican and Democratic congressmen to agree on laws to better regulate the practices of technology conglomerates.