Google is once again under fire for its alleged anti-competitive online advertising practices.
to me bloombergThe US Department of Justice could sue Alphabet, Inc, the search engine’s parent company, for antitrust violations as early as next month.
Google has been repeatedly targeted by antitrust allegations
In October 2020, the federal Department of Justice filed a lawsuit against the search engine giant, which is currently filing 83.84% of the global market. This lawsuit, filed under the Trump administration, alleges that Google’s dominance in online advertising constitutes an illegal monopoly.
In December of the same year, the attorneys general of 16 states and Puerto Rico also sued Google for its statewide violations of antitrust laws. Both suits are currently unstable.
It also faced Alphabet, Inc. Antitrust allegations and charges internationally, including three in the European Union, for which it was fined $1.6 billion. In response to persistent challenges from European lawmakers, Google last month proposed splitting its business.
Google has denied all allegations, insisting its technology is needed to help websites, apps and small businesses reach customers.
“Enormous competition in online advertising has made online advertising more relevant, lowered ad technology fees, and expanded choices for publishers and advertisers,” Google spokesperson Peter Schottenfels said in a statement.
The suit could change the way digital advertising works
Although it’s too early to speculate on the outcome of this legal action, the constant scrutiny under which Google finds itself suggests a change in digital advertising is on the horizon.
Google Ads is currently working on a model where marketers bid on specific keywords. It’s then paired with your ad score and landing page known as a Quality Score. High-quality ads can secure placements, even when they’re being outbid on a keyword.
Google is currently involved in every step of the ad placement process, which, combined with its massive search market share, has given the company according to its critics.
If Alphabet, Inc. To give up one or several operations in bid conversion can lead to significant changes in the online advertising model.
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