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Several states including New York, Colorado, Virginia and California have joined with the Department of Justice to sue Google, charging that the online giant is illegally monopolizing the market for online ads.
Claims include “self-dealing, anticompetitive acquisitions, and forcing businesses to use multiple products and services that it offers,” according to a new report in Politico.
The report noted that the legal fight “could lead to a breakup of Google’s massive advertising business.”
It’s not the first time the government would have taken such action. Decades back, the AT&T monopoly on telephone services was busted up, leading to a long list of competitive companies and services now available in that industry.
And it’s not the only challenge to Google’s ad dominance that has been brought.
Politico explained, “It’s both the DOJ’s second case, and the second case targeting its ad business. The DOJ and a group of state attorneys general sued in October 2020 over Google’s dominance in web searches, and a Texas-led group of state attorneys general challenged its advertising business later that year. Yet another case was filed by a Utah-led group of states last year over Google Play, its mobile app store.”
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CNBC said that the case is “the latest sign that the U.S. government is not backing down from cases against tech firms even in light of a mixed record in court on antitrust suits.”
That report explained Google’s advertising business generated $54.5 billion in the quarter ended Sept. 30 from Search, YouTube, Google Network ads and other advertising.