In October, the Justice Department alleged that Google paying device makers and browser vendors to make Search the default was monopolistic. States are now filing and preparing their own antitrust lawsuits focused on Google’s ad business and preferential ranking in Search.
Led by Texas, today’s lawsuit includes Arkansas, Idaho, Indiana, Kentucky, Mississippi, Missouri, North Dakota, South Dakota, and Utah. It alleges that Google has monopoly power in the following markets: publisher ad servers, display ad exchanges, display ad networks, and ad buying tools for small and large businesses.
A baseball analogy was made to Google being the “pitcher, batter, and umpire, all at the same time.” It’s accused of violating federal and state antitrust laws, thus harming innovation and consumers. The complaint cites one key event:
The fundamental change for Google dates back to its 2008 acquisition of DoubleClick, the leading provider of the ad server tools that online publishers, including newspapers and other media companies, use to sell their graphical display advertising inventory on exchanges. As the new middleman between publishers and exchanges, Google quickly began to use its new position to exert leverage.
Conduct cited as being anticompetitive includes licensing fees, blocking exchange competition, and requiring the use of its first-party offerings. It’s also claimed that Google had an arrangement with Facebook to limit ad competition.
Google, in a statement to The New York Times, refutes the claims and calls them “meritless.” Google also told The Verge that “digital ad prices have fallen over the last decade,” and that there is plenty of competition.
Meanwhile, a second lawsuit featuring over 30 states led by Colorado is expected tomorrow. Reuters reports that this will allege how Google favors its own products, like YouTube, in Search results.
In response to the October suit, Google said that people naturally seek out Search, while arguing that the deals are just common promotion tactics that have real-world analogies.
Author: Abner Li
Source: 9TO5Google
