News and Analytics

0

Alphabet Inc. faces antitrust lawsuit in Virginia court

Sep 9, 2024
  1. Main Allegations Against Google
  2. Google's Defense and Possible Consequences
  3. Broader Antitrust Campaign Against Tech Giants

Alphabet Inc. is set to defend itself in court in Alexandria, Virginia, against a major antitrust lawsuit filed by the U.S. Department of Justice. The trial will focus on Google’s alleged actions aimed at suppressing competition in online advertising.

Main Allegations Against Google

According to the prosecutors, Google has continued to dominate and exert a lot of control over the ad tech landscape, processing over 150,000 ad transactions per second. They allege that the firm engaged in a vast conspiracy to control the digital advertising market by buying up competitors, engaging in restrictive agreements, and fixing prices of ad auctions.

Google's Defense and Possible Consequences

In response, Google has refuted these claims, saying that it operates within the law and aims to enhance its services and meet customers' needs. If Judge Leonie Brinkema finds the company guilty, the issue of selling off Google Ad Manager, which includes the ad exchange and the publisher ad server, may be addressed. According to a 2020 Wedbush report, ad managers represented 4.1% of Google's revenue and 1.5% of its operating profit. Ad tech tools similarly accounted for 11% and 2.6% respectively.

Broader Antitrust Campaign Against Tech Giants

Witnesses from Google, such as Trade Desk, Comcast, NewsCorp, and Gannet, will feature in the multi-week trial to counter the prosecutors' allegations that they were harmed by Google’s conduct. This case is part of several efforts by the Justice Department to challenge perceived monopolies in the tech sector. Recently, the Justice Department obtained an unfavorable decision against Google in another case related to its search engine monopoly. Additionally, the Department is involved in a lawsuit against Apple, and the U.S. Federal Trade Commission is involved in cases against Facebook's parent company, Meta Platforms.

The U.S. antitrust efforts aim to address perceived monopolistic practices in the tech sector. These cases could have far-reaching implications for major tech companies.

Comments

Latest analytics

Bead Pay: Cryptocurrency...

Bead Pay: Cryptocurrency Solutions for Global Payments

Bobby Zagotta and...

Bobby Zagotta and His Impact on the Crypto Industry

Show more

Latest Dapp Articles

Show more

You may also like