The US government will sue Google for its position in the advertising market
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Google enters the crosshairs of the US government. According to reports from Bloomberg, Joe Biden’s administration will file a complaint against the company in the next few hours on charges of abusing its dominant position on the online advertising market. Bloomberg, which quotes people familiar with the facts, specifies that the lawsuit should be filed by the Justice Department and would be the second related to antitrust against the tech giant.
The department previously sued Google in 2020 for its monopoly on online advertising and search engines. The process, according to what has emerged so far, should begin next September. The judges will seek to establish Google’s role in online advertising, the company’s core business capable of generating over 80% of Mountain View’s revenues.
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What will the investigation focus on?
The company offers its search engine service for free. But it makes its income from activities related to advertising that appears both on search results and on third-party sites: news sites, blogs, e-commerce sites. And it is precisely on this that the investigation by the judges will focus, Reuters points out, who will try to answer the doubts raised above all by American publishers who are asking for more transparency with respect to the share of advertising that ends up in Google’s coffers as compensation for the service offered and as for them hosting advertising on their own sites.
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A thorny subject. Which is linked to what was established by the Antitrust three days ago regarding the fair compensation of publishers by the technological giants. Over the years, Google has completed a series of acquisitions capable of optimizing its work on online advertising in the media. In particular, DoubleClick in 2008 and AdMon in 2009. Technologies that have allowed it to establish cutting-edge parameters in the online advertising sector.
Google has so far rejected the accusation of being a monopolist in the sector. In the US it has called into play competitors such as Meta, At&t and Comcast. However, it remains the reference company in this market. Although suffering a bit in recent years. Its share of the online market, in the US alone, dropped from 36.7% in 2016 to 28.8% last year, explains an Insider Intelligence report.
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