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Three people familiar with the matter were cited by Reuters as saying on September 30 that the U.S. The Department of Justice will sue Google’s Alphabet as early as next week. Presently, the department is asking state attorneys general to sign the complaint.
The U.S. is stated to be Google is expected to be accused by the Department of Justice of trying to deprive Bing and other competitors of user data and user preferences used to enhance services and provide advertising, putting the latter at a disadvantage.
According to reports, Google’s search engine, which is suspected of biasing Google’s own services and directing users to Google’s products, has also been investigated by the US Justice Department.
The U.S., according to individuals familiar with the matter. The Department of Justice and the multi-state attorneys general are investigating whether the so-called “tying” tactic, which is to package multiple items for sale, has been adopted by Google to help it exclude rivals and add unfairness to itself. The rewards.
In recent months, US investigative officials have asked rival business executives about the pricing and activities of the Network division of Google. Almost every aspect of digital ads can be managed by the service sold by this organization, from brand concepts to content shown on the screens of customers.
The investigation focuses on the promotions, special features and other terms offered by Google that allow marketers and publishers to use Google products only instead of mixing and matching the services of their competitors. People familiar with the matter said that regulators are also questioning how Google’s larger online search firm communicates to maximize its share of the digital advertisement market with the Internet business.
The “tying” method makes the selling of one item conditional on the purchasing of another item. Gene Kimmelman, a senior advisor to the Public Knowledge think tank and former chief legal counsel to the Antitrust Department of the Department of Justice, said that this activity is generally not illegal, but it could be possible if it is used to strengthen its dominant market position. Violated the act.
If these tools are used to preserve a monopoly, prohibit the entry of new entrants, and exclude rivals, then they could be antitrust actions, “Kimmelman said.”
In the next couple of weeks, US regulators will file an antitrust case against Google. Since the US government sued Microsoft in 1998, this could be the largest antitrust lawsuit. Initially, the Microsoft case centered on the “tying” principle , i.e. how Microsoft uses its dominant Windows operating system to enable consumers to use other products of the business and to exclude alternative products.
Today, investigators are also posing related Google questions. In July, they recently interviewed senior managers of Google’s rival businesses, and the inquiries became more extensive.
Some interviewees have used whiteboards to outline the dynamic nature of the advertising technology industry and Google’s operations, according to individuals familiar with the matter.
“While we are still working with the investigation, the facts are clear: our digital advertising offerings compete with hundreds of businesses in a competitive market,” Google spokesperson Julie Tarallo McAlister said. With technology, rivals compete. This rivalry increases the number of options, helps to reduce the price of Internet ads and decreases prices for companies and customers.
Last year, the Internet division of Google created more than $21 billion in sales, but its growth rate is slower than the other divisions of the organization. Google has also framed this sector as an assistant to digital advertising-based online publishers.
But critics argue that this market is dominated and completely used by Google, so that marketers and publishers are compelled to use their products more.
The three key categories of the ad technology industry are being examined by US investigators: “seller” applications used by online publishers to sell ads, “buyer” platforms used by advertisers to buy these ads, and exchanges linking all parties. To have all these features, Google has the tools.
At the Congressional Antitrust Hearing on July 29, Washington Democratic Representative Pramila Jayapal said: “The issue is that all these ties are dominated by Google. It sounds a bit like the stock market. The only difference is that the advertising market for Google is not regulated.”
According to individuals familiar with the matter, government investigators questioned how if publishers want to auction their advertising space on the Google Ad Exchange, Google will waive publisher fees for using its vendor software. The regulator also questioned about the 2015 decision of Google to restrict the purchasing of advertising on its dominant YouTube video service to its own DV360 bidding tool.
Other ad technology companies said that the move by Google cut off their relationship with large inventories of digital video ads. But Google said that other social media platforms often work like this, and without visiting YouTube, competing ad buying services, such as Amazon’s ad buying service, are growing.
Competitors have protested to investigators that Google had used its dominant internet search company to offer an unfair advantage to its display advertisement company.
Google enables them to opt to pass any unused marketing funds to display advertising when advertisers purchase search ads. Then, these extra costs will flow into the advertisement network and trading site of Google, and this service can not be offered by many rivals.
The marketing budget for search advertisements is so high that the additional funds spent on Google’s display ads often account for about 10 percent of online publishers’ revenue. For this purpose, to reach Google’s advertisement market, most publishers must pay. Kim Melman said, “Google is where you need to go, and there’s no better option.”
A Google spokesperson said that this extra advertisement spending can be purchased by web publishers via other exchanges, but refused to say how many of these advertisements are sold outside the site of Google.
Neal Mohan, who was in charge of Google’s advertising technology services, said the company is creating its own bidding service. Mohan said that once Google has a combination of bidding, buying and selling tools, this will ultimately “significantly increase” Google’s spending.
For many critics, the bigger concern is how Google passes information between its different departments in ways prohibited by other industries. Regulators are considering remedial measures, which may include separating Google’s ad server from other businesses. After all, this tool plays a key role in advertising selection and pricing.
Google was once again bombarded by U.S. conference members: Re-monopoly on top
U.S. senators from both parties stated in a hearing held in the Senate that Alphabet’s Google has a clear dominant position in the search, online video, and ad technology markets. The company has implemented compulsive monopolies to keep its business from This market position benefits.
“Google controls YouTube and search, both of which are monopolistic platforms; you control a lot of consumer data, which comes from consumer-oriented platforms-Gmail, Google Maps, G Suite, etc.,” from Missouri Republican Senator Josh Hawley said, “Then you use this data in advertising technology, which constitutes your advantage. It all looks like a monopoly on top of the monopoly.”
For some of Google’s market behaviors, the US Department of Justice and state attorneys general have raised questions, including how Google uses discounts, restrictions, and bundling measures, so that advertisers and publishers only use Google products and illegally exclude services provided by competitors. purpose.
Democratic Senator Richard Blumenthal from Connecticut said that as a service platform, rules should be established to maintain neutrality between buyers and sellers and auction the services provided fairly, but Google’s behavior ” Not acceptable”.
Don Harrison, president of Google’s global partnership and corporate development business, said that Google does not actually dominate the market in which it operates, and that Google may be in the lead when it comes to all types of general search. Status, but consumers are more likely to choose Amazon’s service platform when conducting product queries and other commercial searches.
Harrison also said that in terms of advertising technology, many companies have also done more successfully, these companies have survived very well, which shows that Google has not harmed the competition.
As Google is subject to antitrust charges from U.S. conference members, state attorneys general, and competitors, it is expected that the U.S. Department of Justice will file a lawsuit against Google in the coming weeks.