Google is sued for antitrust violations in the advertising market, Google counters that ``a huge competitive market is ignored''
On January 24, 2023, the U.S. Department of Justice announced that it had filed an antitrust lawsuit against Google for ``pursuing superiority in digital advertising technology through anticompetitive, exclusive, and illegal conduct.'' .
Justice Department Sues Google for Monopolizing Digital Advertising Technologies | OPA | Department of Justice
DOJ's lawsuit ignores the enormous competition in the online advertising industry
https://blog.google/outreach-initiatives/public-policy/doj-ad-tech-lawsuit-response/
The DOJ sues Google for ad dominance, wants to break company up | Ars Technica
https://arstechnica.com/gadgets/2023/01/the-doj-sues-google-for-ad-dominance-wants-to-break-company-up/
On January 23, 2023, it was reported that the U.S. Department of Justice would be suing Google for its dominance in the digital advertising market, and the likelihood of filing a lawsuit as early as January 24 was increasing. .
It is reported that the US Department of Justice is preparing an antitrust lawsuit for the advertising business against Google - GIGAZINE
Attorney General Merrick Garland said in a statement on Thursday, 'With this complaint, Google seeks a non-competitive, exclusive and unlawful lawsuit to eliminate or significantly undermine any threat to its dominance in digital advertising technology. I have alleged that I have acted,' he said, revealing that he sued Google for violating the Sherman Act , one of the antitrust laws.
Google's anti-competitive behavior listed by the US Department of Justice is as follows.
・Acquisition of competitors
・Forcing adoption of Google tools
・Distortion of auction competition
・Auction operation
According to the US Department of Justice, Google's ad server 'DoubleClick for Publishers' on the sell side, that is, on the selling side of advertising space, has a share of more than 90%. On the buy side, which is the advertiser on the buying side of ad space, 80% is the 'Google Ads Network' for small and medium-sized enterprises, and 40% is ' Display & Video 360 ' for major advertising agencies. The US Department of Justice points out that the share rate of 'Google Ad Exchange' that matches buyers is also 50%.
In response to the US Department of Justice seeking compensation based on these points, Google said, ``Since the acquisition transaction was approved by regulators, competition in the advertising market has intensified.'' Acquisition of Microsoft's advertising platform 'Xandr', growth of Amazon's advertising business exceeding Google and Meta, rapid rise of Apple's advertising business, advertising revenue of 10 billion dollars (1.3 trillion yen) in just 5 years Based on the emergence of TikTok, which has become popular, he argued that ``the government should not decide winners and losers in a highly competitive industry.''
The US Department of Justice is seeking to separate DoubleClick and AdMeld, which Google acquired more than 10 years ago, in order to eliminate Google's monopoly on the advertising market. On the other hand, Google has previously offered a concession plan to spin off part of its advertising business and transfer it to parent company Alphabet.
Google proposes concessions to avoid antitrust lawsuits in advertising business, what is the problem and how to deal with it? -GIGAZINE
Regarding this move, Ars Technica, an IT news site, said, ``It's hard to imagine the dismantling of Google. The last time Bell System , which dominated phone service, was split into AT & T, Verizon and others, so these threats are usually just the starting point for negotiations.'
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