Merrick Wreath

The United States Attorney General announced the lawsuit against Google.

(Photo: AP)

Washington The United States government owns the internet company. Google for anticompetitiveness defendant. Google’s dominance in digital advertising is hurting customers and advertisers, Attorney General Merrick Garland said Tuesday. The company uses its position of power to buy out rivals and force advertisers to use Google products by making it harder to access competing offerings. As a result, website builders earned less and advertisers paid more.

Eight other US states have joined the lawsuit filed in Virginia. As an example of Google’s approach, the Ministry of Justice referred to the purchase of the advertising service provider Doubleclick in 2008. Google then introduced a technology that involved a very fast bidding process for advertising on websites.

Google has been on an anticompetitive course for 15 years, Garland said. The company has stymied the rise of competing technology, rigged online advertising auctions, and thereby greatly weakened, if not destroyed, competition in the industry.

The plaintiffs are demanding that Google unbundle its advertising business — namely the ad manager and ad exchange programs — and also change all structures that prevent competition.

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Google’s mother alphabet claimed the lawsuit simply repeats false arguments. His success would cripple invention, drive up advertising prices, and stunt the growth of thousands of small businesses.

Pressure grows from Washington against Big Tech

For Google, this is the second lawsuit filed by the Department of Justice in just over two years. It shows that the pressure on Big Tech continues to grow under the Biden administration. In October 2020, the ministry had already sued Google for violating antitrust law during the Trump administration. At that time it was about domain abuse in the search engine market.

Google is not alone in its demand. Washington is also taking a closer look at other big tech companies: The competition watchdog FTC has two lawsuits against them. facebook mom goal and one against Microsoft to run.

>> Read here: Microsoft is investing “billionaires” in OpenAI, maker of ChatGPT

It is not yet possible to say whether the new lawsuit against Google will also lead to a split of the group. Unlike Europe, in the USA a company cannot be dissolved by law. Only the Department of Justice can sue and then have to convince a court of monopoly and misconduct. The court then decides what punishment is appropriate.

The problem with these legal processes: a process until the last resort can take years, which in the constantly changing technological world is usually half an eternity. Even with the first lawsuit against Google from 2020, the process is not scheduled to start until this September, almost three years later.

Spinoffs are hard in the US.

Dividing corporations has worked in the US in the past: Standard Oil, the Rockefellers’ oil company, which kept competitors out of the market with unsightly methods and was thus able to command monopoly prices, had to break up. Also the telecommunications monopoly AT&T it was divided.

But already in Microsoft decommissioning advocates have bitten their teeth. An appeals court reversed the decreed spin-off of certain business areas. Instead, the Justice Department agreed with Microsoft to open up browsers and other software.

With AP agency material.

More: What’s behind the ChatGPT Chatbot

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