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DOJ files second antitrust lawsuit against Google, seeking to split advertising business

DOJ files second antitrust lawsuit against Google, seeking to split advertising business

 


Workers walk the paths of the Google Bayview campus in Mountain View, California, June 27, 2022.

Noah Berger/AFP via Getty Images

Updated January 24, 2023 at 5:30 PM ET

The Justice Department and eight states filed a lawsuit Tuesday against Google over its digital advertising business, accusing the tech giant of illegally monopolizing the online advertising market.

This is the second antitrust lawsuit federal authorities have filed against the company’s advertising empire, which has been under scrutiny for years over allegations that it is self-dealing and strangling its competitors.

“For 15 years, Google has pursued anti-competitive behavior that has included thwarting the rise of competing technologies, manipulating auction mechanics, isolating itself from competition, and harassing advertisers and advertisers,” Merrick said. We were able to force publishers to use our tools.” Garland at a press conference announcing the lawsuit.

In a 155-page lawsuit filed in the Eastern District of Virginia, officials accused Google of making acquisitions to boost its advertising division, effectively coercing advertisers and publishers to use its products and harassing rival advertising firms. said to have caused damage.

“Google, one of the giants of the industry, is committed to the ad It has corrupted legitimate competition in the tech industry,” prosecutors said. He wrote in a suit on Tuesday.

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The Justice Department also says the company designed a system to force 2 million advertisers, including parts of the U.S. government such as the military, to pay higher fees. According to filings, federal agencies and departments have forced him to buy more than $100 million in web advertising and pay “ultra-competitive rates” and “manipulated advertising prices” starting in 2019. I did.

The lawsuit is expected to continue for some time, but prosecutors are asking federal judges to force Google to separate its advertising segment from the rest of the company.

In a statement, Google said there was a lot of competition in its advertising department and that the lawsuit filed by prosecutors against the tech giant would make buying ads more expensive.

“Today’s lawsuit by the DOJ seeks to pick winners and losers in the highly competitive ad tech sector. It seeks to multiply the flawed arguments that make it difficult to

As if “Goldman or Citibank owned the New York Stock Exchange”

Officials argue that the online advertising world tends to favor Google “not for accidental or compelling reasons.”

For example, in 2017 Google acquired DoubleClick, maker of a widely used advertising tool, for $3.1 billion.

This gives Google direct access to the inventory of website publishers and the ad serving technology used by those publishers.

Google also manages a major online advertising exchange where businesses bid to reach target audiences on the Internet in real time.

The acquisition of DoubleClick gives DoubleClick strength in both aspects of online advertising commerce. It sold ads to publishers and influenced the tools publishers use to display their ads. Not to mention the online auction houses where the transactions take place.

Prosecutors allege that Google abused its powers by essentially manipulating the system in its favor.

The acquisition gave Google “unilateral authority to enforce a series of anti-competitive restrictions.” So Google was able to put up a barrier. Google “used its advantage over both publishers and advertisers in the marketplace to stifle competition across the technology stack,” the agency wrote in the complaint.

The complaint cites internal communications from Google advertising executives comparing the company’s strengths in multiple parts of the ad sales process:

They also explain how Facebook shut down its ad tech project when it realized it was “affected by one bottleneck and middleman, Google.”

The lawsuit has similar allegations to a lawsuit filed by a coalition of states in 2020 targeting Google’s advertising business. A federal judge in September allowed the case to proceed while narrowing the allegations.

Copyright 2023 NPR. For more information, please visit https://www.npr.org.

Sources

1/ https://Google.com/

2/ https://www.mprnews.org/story/2023/01/24/npr-doj-files-second-antitrust-suit-against-google-seeks-to-break-up-its-ad-business

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