PanamaTimes

Friday, Apr 19, 2024

Google sued by 10 US states for 'anti-competitive' online ad sales

Google sued by 10 US states for 'anti-competitive' online ad sales

Texas Attorney General Ken Paxton announced the suit, arguing that "this Goliath of a company is using its power to manipulate the market, destroy competition, and harm you, the consumer."
Ten US states on Wednesday brought a lawsuit against Google, accusing the search giant of “anti-competitive conduct" in the online advertising industry, including a deal to manipulate sales with rival Facebook.

Texas Attorney General Ken Paxton announced the suit, which was filed in a federal court in Texas, saying Google is using its “monopolistic power” to control pricing of online advertisements, fixing the market in its favour and eliminating competition.

“This Goliath of a company is using its power to manipulate the market, destroy competition, and harm you, the consumer,” Paxton said in the video posted on Twitter.

Google, which is based in Mountain View, California, called Paxton's claims "meritless" and said the price of online advertising has fallen over the last decade.

“These are the hallmarks of a highly competitive industry,” the company said in a statement. "We will strongly defend ourselves from (Paxton's) baseless claims in court.”

Paxton led a bipartisan coalition of 50 U.S. states and territories that announced in September 2019 they were investigating Google’s business practices, citing “potential monopolistic behaviour.”

Now Texas is bringing the suit along with other Republican attorneys general from Arkansas, Idaho, Indiana, Kentucky, Mississippi, Missouri, North Dakota, South Dakota and Utah.

The complaint targets the heart of Google’s business — the digital ads that generate nearly all of its revenue, as well as all the money that its corporate parent, Alphabet Inc., depends upon to help finance a range of far-flung technology projects.

As more marketers have increased their spending online, those digital ads have turned Google into a moneymaking machine. Through the first nine months of this year, Google’s ad sales totalled nearly $101 billion (€82.5 billion), accounting for 86% of its total revenue.

And now the states contend Google intends to use its alleged stranglehold on digital ads to choke off other avenues of potential competition and innovation. The company struck an illegal deal with Facebook, a major competitor for ads, to manipulate advertising auction, according to the complaint. Facebook declined to comment.

“Google has an appetite for total dominance, and its latest ambition is to transform the free and open architecture of the internet,” the suit alleges.

In the “ad tech” marketplace that brings together Google and a huge universe of online advertisers and publishers, the company controls access to the advertisers that put ads on its dominant search platform. Google also runs the auction process for advertisers to get ads onto a publisher’s site. Nine of Google’s products in search, video, mobile, email, mapping and other areas are estimated to have over a billion users each, providing the company with a trove of users’ data that it can deploy in the advertising process.

Google officials say the company shares the majority of its “ad tech” revenue with publishers, such as newspaper websites. An official recently rejected even the assertion that Google is dominant, saying that market dominance suggests abuse, which is foreign to the company.

The state's suit comes after the U.S. Justice Department sued Google in October for abusing its dominance in online search and advertising — the government’s most significant attempt to buttress competition since its historic case against Microsoft two decades ago.

Separately, the FBI is investigating whether Paxton, a close ally of President Donald Trump, broke the law in using his office to help a wealthy donor who is also under federal investigation. This fall, eight of the attorney general’s top deputies accused him of bribery, abuse of office and other crimes in the service of an Austin real estate developer who employs a woman with whom Paxton is said to have had an extramarital affair.

All eight of Paxton's accusers have since been fired or resigned, including the deputy attorney general who had been leading the office's probe of Google. The court complaint list attorneys with private firms in Houston, Chicago and Washington, D.C., as the lead lawyers on the case.

Paxton announced the lawsuit the week after the U.S. Supreme Court rejected his legal push to overturn Joe Biden’s victory in the presidential election, a case that prompted widespread speculation that the attorney general is angling for a preemptive pardon from Trump.

The American Economic Liberties Project, an organisation that advocates for government action against business concentration, welcomed the states’ suit.

“Google’s current business model is a threat to democracy and the free press,” Sarah Miller, the group’s executive director, said in a statement.
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×