Google Faces New Antitrust Lawsuit Over Online Ads
According to an unnamed source on Bloomberg, the Department of Justice (DOJ) in the U.S. is preparing a new lawsuit against Google – Alphabet Inc (NASDAQ:GOOGL) – to clamp on its power in the online advertising business.
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A New Lawsuit Coming
The lawsuit, the person familiar with the matter said, is to be filed by the end of this year. The authority is summoning third parties as witnesses, as well as targeting documents into what is seen as a thorough investigation that is picking pace.
According to Bloomberg, scrutiny dates back to Donald Trump’s term, as “The DOJ under then-Attorney General William Barr sued Google over its search business instead, alleging the company used exclusive distribution deals with wireless carriers and phone makers to lock out competition.”
Later, a group of state attorneys accused the internet giant of unlawfully “monopolizing the digital advertising market.”
They went on to claimed that Google and Facebook Inc (NASDAQ:FB) had reached an illegal deal to rig online auctions “where advertisers and website publishers buy and sell ad space.”
On Wednesday, the company stated to be a fair competitor in an online business that offers people several options.
“Our advertising technologies help websites and apps fund their content, enable small businesses to grow, and protect users from exploitative privacy practices and bad ad experiences,” Google told AFP.
Ongoing Controversy
Google alleges that monopolistic claims are groundless as the online advertisement business is a hardly contested one with the likes of Facebook, Amazon Inc (NASDAQ:AMZN), and Comcast Corp (NASDAQ:CMCSA).
The company also denies the auction manipulation claims involving Mark Zuckerberg’s company.
Google said: “Our advertising technologies help websites and apps fund their content, enable small businesses to grow, and protect users from exploitative privacy practices and bad ad experiences.”
“There is enormous competition in advertising tools, which has made online ads more relevant, reduced fees, and expanded options for publishers and advertisers.”
In early July, Google was the subject of an antitrust lawsuit over monopolistic practices on its app store, as the company allegedly forces developers to use its distribution software.
The charge was led by New York State Attorney General Letitia James, together with 37 U.S. attorneys.
Over the same accusations, the South Korean parliament approved a bill this week to curb Google’s control on app store payments, as it forces developers to use their proprietary billing systems.
Google, Amazon, and Facebook are part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.
Updated on Sep 2, 2021, 9:16 am
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