Google is facing lawsuits from the United States Department of Justice and eight states over its alleged dominance of the digital media market. Google has been accused of using its monopoly power to damage websites and advertisers using other media tools. The lawsuit, filed on Tuesday, January 24, 2023, alleges that Google’s anti-competitive practices have raised its barriers to entry to high levels, forcing major competitors to exit the media technology market.
Furthermore, it prevents potential competitors from joining the market and leaves some of Google’s remaining competitors at an unfair and disadvantageous position.
He went on to say that Google’s various acquisitions caused it to stop or eliminate competitors, and its actions caused other companies to use its tools. According to the government’s lawyers, “these combined and interdependent actions have a cumulative effect that harms competition and the competitive process.”
In addition, the Department of Justice said that Google “receives more than 30% of advertising dollars on average from its digital advertising technology products.”
Google responded to the case in a blog post. The search engine giant has argued that the Justice Department’s request for Google to release two of its earlier acquisitions, which date back more than a decade, is an attempt to rewrite the history of losing publishers, advertisers and Internet users.
Google also said the plaintiffs are misrepresenting the way its advertising products work. According to the Alphabet subsidiary, they do not force customers to use their products, “but people choose to use them because they work.”
Google announced other companies also working in the media business, including Microsoft, Amazon, Apple and TikTok. Dan Taylor, Google’s vice president of global advertising, wrote, “Today’s ruling by the Department of Justice seeks to pick winners and losers in the highly competitive media industry.”
Taylor alleged that many of them copied the Texas Attorney General’s illegal documents, many of which were dismissed in federal court. “The Department of Justice is doubling down on negative arguments that will stifle innovation, increase advertising costs and make it harder for thousands of small businesses and publishers to young,” he said.
It seems that Google knows that there will be a legal system. Last year, the company sought to avoid potential lawsuits from the Justice Department by proposing to separate its social media business, which sells and places ads on consumer websites, from and Google Digital’s advertising arm.
However, instead of making it a separate company, the move will put the division under Google’s parent company, Alphabet.
Furthermore, Google’s other reported assertions are insufficient to convince the US government that the company is not engaging in anti-competitive behavior.
The lawsuit asked the court to force Google to give up its advertising business. Eight states, including New York, California, Connecticut and Virginia, have joined the court