Business

US accuses Google of 'driving out' ad rivals

A federal lawsuit alleges the tech giant’s anti-competitive actions mean more websites need paywalls.

Source link The United States Department of Justice has accused Google of being anti-competitive in its advertising business, alleging that the search engine behemoth is taking steps to “drive out” rivals in the advertising market.

At the center of the accusations is the fact that Google allegedly uses its power to restrict other companies from competing in the online ad market. The DOJ claims that Google is using its dominance in the market to prevent other advertisers from having a “fair shot at success” and instead ensuring that its own advertising business remains profitable.

The lawsuit claims that Google has been able to effectively shut out other advertisers from the market, preventing them from gaining access to valuable “inventory” of advertising space on websites and different platforms. As a result, the DOJ claims that Google’s practices have resulted in “anticompetitive effects on industry participants”.

Google has denied the allegations, claiming that its practices are about delivering the best possible results to users and advertisers. The company argued that its dominance in the market is the result of its own innovation and hard work and not an effort to squeeze rivals out.

The lawsuit is a major development in the ongoing battle between the U.S. government and the tech giants. In recent years, it has become increasingly difficult to regulate corporate activity in the tech sphere and this lawsuit is a direct challenge to Google’s power over the online advertising market. It remains to be seen how the case will unfold and whether it will have any consequences for Google’s dominance in the sector.

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