United States sues Google for monopoly

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United States sues Google for monopoly

Hard blow to Google. The United States government and eight other states have sued the technology giant for an alleged monopoly in the digital advertising market. In their lawsuit, filed this Tuesday before the courts, they accuse the multinational of abusing its “monopoly power” to benefit their business and harm that of their competition.

“Google's anti-competitive behavior has raised barriers to entry to artificially high levels, forced key competitors out of the market for < strong>ad technology , has deterred potential competitors from entering the market and has left Google's few competitors marginalized and at an unfair disadvantage,” reads the text, headed by the Justice Department. p>

In their lawsuit, the US authorities ask the court to force Google to divest itself of its advertising businesses. Last year, the company tried to He tried to dodge that complaint by separating his auction business from advertising —which places ads on clients' web pages— from its digital advertising division. However, he placed it on the right. under the umbrella of Alphabet, its owner. That change has not convinced the Department of Justice, which has returned to the charge against Google and accuses it of acting to “neutralize or eliminate” its competitors.

Lí ;ad market leader

Google dominates the digital advertising market. The Californian company entered the market. in 2022 some 168,440 million dollars for digital ads, according to estimates by the market analysis firm Insider Intelligence. No company in the world obtains so many benefits in this field and only Meta, owner of Facebook and Instagram, comes close to those figures.< /p>

In addition, digital advertising is key to Google's business, accounting for more than 80% of its revenue. Thus, the request by the authorities to divest itself of that part of its business could seriously harm the multinational.

The United States thus closes the company. The siege on the giants of the technology sector for their concentration of power. As early as 2020, the Justice Department sued He charged Google, accusing it of also acting as an illegal monopoly of the web search market, a business that it also dominates with an iron hand thanks to its popular search engine. The company is ready. trying to stop these accusations through the courts.