A threat of dismantling is becoming clearer for Google

A threat of dismantling is becoming clearer for Google

the United States Department of Justice ad wear complaint against Google alongside several US states. A lawsuit for abuse of a dominant position in the online advertising market with advertising technologies (ad-tech).

Google has used anti-competitive, exclusionary and unlawful methods to eliminate or significantly reduce any threat to its dominance over technologies used for digital advertising “, says Merrick Garland, Attorney General of the United States.

An industry juggernaut, Google, has corrupted legitimate ad tech competition by engaging in a systematic campaign to take control of the vast array of high-tech tools used by publishers, advertisers and brokers to facilitate digital advertising “, alleges the complaint.

Grievances against Google

The charges relate to acquiring competitors for the purpose of gaining control of key digital advertising tools used by website publishers to sell ad space, and forcing adoption of these tools through its automated platform to marketing of advertising space.

Google is also singled out for limiting real-time bidding and manipulating bidding mechanisms in several of its products that have harmed competition.

Google controls the technology used by almost all major website publishers to offer advertising space for sale. […] Google controls the main tool used by advertisers to buy this advertising space. […] Google controls the largest ad exchange that connects publishers and advertisers every time ad space is sold. […] With this system, the website publishers earn less and advertisers spend more “, denounces Merrick Garland.

The transfer of lucrative activities for Google?

The plaintiffs want to condemn Google for infringement of competition law and obtain damages. In addition to an injunction to prevent the continuation of practices that would be anti-competitive, the complaint also seeks to obtain the divestiture of certain ad tech products from the group. It’s a threat of dismantling Google’s advertising platform.

In 2020, the US Department of Justice already filed an antitrust lawsuit against Google for abuse of dominance in online search and advertising. The new action is different by focusing on the ad tech sector.

In a reaction, Google believes that the United States Department of Justice is trying to ” identify winners and losers in the highly competitive ad tech industry “and tries to” rewrite history at the expense of publishers, advertisers and Internet users “, pointing out that the takeovers had been reviewed by regulators, including the US Department itself.

The US Department of Justice is sticking to a flawed argument that would slow innovation, increase advertising costs, and make it harder for thousands of small businesses and publishers to grow.