Why The US Government Is Suing Google In An Antitrust Case? The Department of Justice of the United States has filed a lawsuit against Google for monopolisation concerns. In a report from Bloomberg, it was stated that eight states are joining the United States Department of Justice in a lawsuit against Alphabet’s Google, calling for the break up of Google’s ad technology business due to alleged illegal monopolisation. The details of the lawsuit were provided in the report.
The Department of Justice’s complaint includes a passage that reads in part as follows: “The harm is clear: website creators earn less, and advertisers pay more, than they would in a market where unfettered competitive pressure could discipline prices and lead to more innovative ad tech tools that would ultimately result in higher quality and lower cost transactions for market participants.” “This behaviour is harmful to all of us.”
What Google Said In Response Of Lawsuit
In response to the lawsuit, Google issued a statement to Bloomberg in which it stated that the Department of Justice is “doubling down on a flawed argument” that would hinder innovation, increase advertising costs, and make it more difficult for thousands of small businesses and publishers to expand.
According to the survey, Alphabet is the dominant player in the international advertising business, and it is anticipated that the company will bring in $73.8 billion in income from digital advertising in the United States this year. It is estimated that Google’s search advertising revenue alone will bring in $58.5 billion of that total.
This is the second antitrust case brought against Google by the Department of Justice. The Department of Justice and numerous state attorneys general filed a lawsuit against Google in October 2020 regarding the company’s preeminent position in the web search industry. That case is still being heard in the federal court, and it is quite unlikely that this new case will be resolved for several years.
The revelation broke last week that internet search giant Google has fired 12,000 employees, making this the largest single round of layoffs in the company’s entire history. It occurred during the same week that Microsoft made an announcement about layoffs that would effect 10,000 employees.
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