Ten Republican US states drag Google to court for its monopoly over ad business

3 min read | December 18, 2020 03:58 PM AEDT | By Edita Ivancevic

Summary

  • Ten of the Republican-controlled states in the US criticised Google for colluding with Facebook regarding online advertisements.
  • Google is allegedly guilty of edging out its competitors by pushing its ads on the top on the Facebook platform.
  • Currently, there are several other antitrust lawsuits against the Big Tech companies (Google, Amazon, Apple, and Facebook).

Ten attorneys general in the US opened another antitrust lawsuit against the search engine giant Google on Thursday.

The Republican-led group of attorneys accused the multibillion-dollar company of showing monopoly behaviour in online advertisements. Particularly, tying-up with Facebook to curb its own efforts to compete with Google for advertisements.

The prosecutors added that Google overpriced its advertising services for publishers, who wanted to promote their content on the social site, and elbowed out competitors who wanted to challenge Google’s monopoly.

Google has, however, denied all the accusations, saying it would challenge the accusations through a trial in the court.

Image Source: Shutterstock

The antitrust court case adds on to the pile of charges against one of the most popular technology companies.

The latest antitrust lawsuit has come two months after the Department of Justice filed another lawsuit, backed by 11 American states. In the lawsuit, DOJ had alleged that Google used its partnership with Apple and offered US$12 billion annually to prevent competition from other search engine businesses.

RELATED: Why is the Department of Justice filing an antitrust suit against Google?

Image Source: Shutterstock

Texas prosecutor Ken Paxton was quoted as saying that the Texas state was leading the anti-trust lawsuit.

Several regulators from Europe and the US are trying to undermine Google, Facebook, Amazon, and Apple’s impact on the modern economy, as the Big Tech giants have often been accused and prosecuted for not allowing a fair competition.

DID YOU READ: Do Google, Facebook, Amazon, Google, and Apple allow fair competition?

Two months ago, Google was blamed for manipulating ads in search results, creating significant monopoly and edging out the rivals.

Federal Trade Commission and over 40 states in the US prosecuted Facebook for alleged misuse of power, as the social media titan purchased most of its competitors, such as Instagram and WhatsApp, within the industry..

Image Source © Kalkine Group

What are the experts’ thoughts?

In his formal statement, Mr Paxton referred to Google as a significant violator of justice. He also believes that every company in the Big Tech group should be brought to righteousness.

Other professionals in the field suggested that Google should be divided into more divisions due to its enormous impact on the content and entertainment news people see on the internet every day.

The Justice Department recommended the same thing, as breaking a company into smaller units is often seen as the most effective choice when it comes to curbing its monopoly.

According to the research, Google owns 90 per cent of internet tools which operate the online advertising. That said, smaller marketing businesses cannot grow without paying large sums to Google.

Google defended its practices by saying it was not overcharging publishers, adding it had lower expenses than the industry average.


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