Google has been sued by the U.S. Justice Department (DOJ) for exploiting its market dominance in online advertising.
Tuesday, 24 January 2023, a lawsuit was filed by the DOJ along with eight states: Virginia, California, Colorado, Connecticut, New Jersey, New York, Rhode Island, and Tennessee.
Why Is Google in the Wrong?
The American firm is accused of buying other organizations to knock out competition in the online ad market. This way, advertisers and publishers are forced to use Google services, and the tech giant gains control over the advertisement services on the online market.
But competition in the ad tech space is broken, for reasons that were neither accidental nor inevitable. One industry behemoth, Google, has corrupted legitimate competition in the ad tech industry by engaging in a systematic campaign to seize control of the wide swath of high-tech tools used by publishers, advertisers, and brokers, to facilitate digital advertising. Having inserted itself into all aspects of the digital advertising marketplace, Google has used anticompetitive, exclusionary, and unlawful means to eliminate or severely diminish any threat to its dominance over digital advertising technologies.
This was the strategy used by the company to gain control over the tools used by the majority of ad space sellers, the ones used for buying ad space, as well as over the most prominent ad exchange that facilitates the communication between sellers and buyers.
The current situation leads to big disadvantages for the competition and helps Google to attract more business for its own