Attorney General Merrick Garland announced the suit Tuesday afternoon. The attorney general said, “We allege that Google has used anti-competitive, exclusionary, and unlawful contact to eliminate or severely diminish any threat to its dominance over digital advertising technologies.”
Google generated nearly $55 billion in advertising revenue for the quarter that ended September 30th
In the complaint, one of Google’s ad executives was allegedly quoted knocking the company’s attempt to control all aspects of the digital ad market. The anonymous Googler said, “[I]s there a deeper issue with us owning the platform, the exchange, and a huge network? The analogy would be if Goldman or Citibank owned the NYSE.”
Google says that the Justice Department is “doubling down on a flawed argument”
The filing states that “In effect, Google was robbing from Peter (the advertisers) to pay Paul (the publishers), all the while collecting a hefty transaction fee for its own privileged position in the middle. Rather than helping to fund website publishing, Google was siphoning off advertising dollars for itself through the imposition of supra-competitive fees on its platforms. A rival publisher ad server could not compete with Google’s inflated ad prices, especially without access to Google’s captive advertiser demand from Google Ads.”
The suit goes on to say, “So, in response, Google employed a familiar tactic: acquire, then extinguish, any competitive threat.” The news of the lawsuit took the stock of Google’s parent Alphabet under triple digits as the shares dropped $2.00 or 1.98% during regular trading hours to $99.21. In after-hours trading, the stock gave up an additional 74 cents (.75%) to $98.47.
In a statement, Google said, “Today’s lawsuit from the DOJ attempts to pick winners and losers in the highly competitive advertising technology sector,” a Google spokesperson said in a statement. “It largely duplicates an unfounded lawsuit by the Texas Attorney General, much of which was recently dismissed by a federal court. DOJ is doubling down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.”
Read original article here
Denial of responsibility! Gulehri.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – firstname.lastname@example.org. The content will be deleted within 24 hours.