Why the US will sue Google over advertising
The Justice Department is suing Google over its alleged dominance in online advertising. All the details
The US Justice Department is close to suing Google, perhaps as early as today, over issues related to its dominant position in the online advertising market.
This was revealed by Bloomberg , who writes that the case will be presented in federal court by the end of this week. However, neither Google nor the Justice Department have made any statements yet.
THE LAWS AGAINST GOOGLE FOR MONOPOLY REASONS
The lawsuit will be the second case the department has filed against Google for monopolistic reasons. The company – led by Sundar Pichai and part of the Alphabet group – is the largest operator in the US online advertising market, worth over 278 billion dollars: it controls much of the technology used to buy, sell and manage advertising on the Internet.
For Google, this will be the fifth major lawsuit in the US questioning its business practices. The company has already been accused of exercising a dominant position in the market for online searches (through the search engine of the same name), in advertising and in applications for mobile devices using the Android operating system (developed by Google) .
HOW MUCH IS THE ONLINE ADVERTISING MARKET WORTH
According to an estimate by research firm EMarketer, the global Internet advertising market is worth $626.8 billion; the largest national market is the United States.
In this sector, Alphabet is the first global operator: it is expected that in 2023 digital advertising operations in the United States will bring the company revenues of almost 74 billion dollars.
GOOGLE'S DEFENSE
Google runs a service for selling advertising space on the web, a service for those interested in buying them and also a platform in which the two parties carry out transactions through very fast auctions, writes Bloomberg .
Google disputes the definition of dominant subject, arguing on the contrary that the online advertising sector is very competitive: among the rival companies identified by the company are Meta (owner of Facebook and Instagram), Amazon and Microsoft (which manages an advertising service formerly known as Bing Ads).
THE DEPARTMENT OF JUSTICE MONITORING
The Justice Department began its work of monitoring the digital sector in the years of the Donald Trump administration (January 2017-January 2021). Then-Attorney General William Barr, for example, sued Google over its online search activities, arguing that the company used exclusive distribution agreements with phone makers to limit competition. The trial will be held in September.
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This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/causa-google-pubblicita-online-posizione-dominante/ on Tue, 24 Jan 2023 14:55:41 +0000.