Monday, January 30

United States sues Google for monopoly


hard blow to Google. The government of USA and another eight states have denounced the technology giant for an alleged monopoly in the market of digital advertising. In their lawsuit, presented this Tuesday before the courts, they accuse the multinational of abusing its “monopoly power” to benefit their business and harm that of their competence.

“The anti-competitive behavior Google has raised the barriers to entry to artificially high levels, has forced key competitors out of the market for advertising technologyhas discouraged potential competitors from entering the market and has left Google’s few competitors marginalized and at an unfair disadvantage,” reads the text, headed by the Department of Justice.

In their lawsuit, the US authorities ask the court to force Google to divest itself of its advertising businesses. Last year, the company tried to dodge that complaint by separating its auction business from advertisements —which places ads on clients’ websites—from its digital advertising division. However, he placed her under the umbrella of alphabet, its owner. This change has not convinced the Department of Justice, which returns to the charge against Google and accuses it of acting in order to “neutralize or eliminate” its competitors.

Advertising market leader

Google dominates the digital advertising market. The Californian company entered some 168.440 million dollars in 2022 from digital ads, according to estimates by the market analysis firm Insider Intelligence. No company in the world obtains so many benefits in this field and only Goalowner of Facebook and instagramis close to those figures.

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In addition, digital advertising is key to Google’s business, accounting for more than 80% of its revenue. Thus, the request by the authorities to get rid of that part of its business could seriously harm the multinational.

USA thus narrowing the siege on the giants of the technology sector due to their concentration of power. Back in 2020, the Department of Justice sued Google, accusing it of also acting as an illegal monopoly of the Internet market. searches web, a business that it also dominates with an iron fist thanks to its popular search engine. The company is trying to stop these accusations through the courts.

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