The United States wants to legally divide Google’s ad technology business into parts because it has too dominant a market position.
of the United States the Department of Justice and eight states are taking Alphabet-owned Google to court, accusing the company of an illegal monopoly in the digital advertising market.
It is the President of the United States Joe Bidenin the season’s first significant legal case challenging Google’s dominance.
“The situation would be comparable to if Goldman or Citibank owned the New York Stock Exchange,” the ministry and the states claim in documents submitted to the court news agency Bloomberg’s by.
In the lawsuit, the ministry demands that Google’s advertising technology business be divided into parts. The states of New York, California and Virginia are involved in the case.
Google’s advertising tools dominate the digital advertising market in the United States, which is worth a total of $280 billion, according to Bloomberg. According to Emarketer’s estimate, 26.5 percent of all money spent on digital advertising in the United States will go into Google’s coffers this year.
Google by the lawsuit has misunderstood how much competition there really is in the ad tech industry. According to Google, a solution according to the position of the Ministry of Justice would slow down the creation of innovations and increase the costs of advertising. The arguments are familiar from previous projects against the power of giant companies.
According to the ministry, Google has 15 years of anti-competitive activity behind it, which includes, for example, numerous acquisitions “to achieve a dominant market position”.
We may end up waiting several years for a solution to the case. In the same lawsuit, the ministry claims that Google has charged excessive amounts of money from public operators for online advertisements.
There are few similar cases leading to the division of giant companies. For example, in the 1980s, the Department of Justice opposed the monopoly of telephone services in the United States. As a result, the business was divided into numerous companies.