Pressure on Google mounts as fresh lawsuit hits ad practices

10 American states file a monopoly linked appeal in court

Photo: Ken Paxton

The popular tech giant Google came under legal crossfire on renewed claims related to company’s advertising policy. This time the pressure comes from the US as the ad policy of the search engine and possible shady agreements aimed at monopoly were brought to court, BBC reported.

Ten US states, led by Texas, are suing Google, accusing it of taking illegal steps to preserve its monopoly over the online advertising market. The alleged moves include striking a deal with Facebook to manipulate online advertising auctions, the states said. This is the latest legal complaint facing the tech giant, which is under pressure from regulators globally. Google rejected the claims, saying it would be "strongly" defending itself in court.

"We've invested in state-of-the-art ad tech services that help businesses and benefit consumers. Digital ad prices have fallen over the last decade. Ad tech fees are falling too. Google's ad tech fees are lower than the industry average," a company spokesperson said in response to the  lawsuit. "These are the hallmarks of a highly competitive industry." Facebook declined to comment.

The lawsuit takes aim at Google's control of the online advertising market, which it says was cemented in 2008 with its purchase of DoubleClick, the main software that publishers use to sell online advertising. Google's advertising sales account for over 80% of its revenues.

The lawsuit also accuses Google of giving Facebook advantages in online advertising markets, in exchange for the firm dropping some of its plans to compete.

"Google repeatedly used its monopolistic power to control pricing, engage in market collusion to rig auctions in a tremendous violation of justice," said Texas Attorney General Ken Paxton in a video announcing the lawsuit, posted on Twitter.

"Right now, when you visit the website of a news outlet you know and trust, like the Wall Street Journal or your favourite local paper, you'll see advertisements likely placed there by Google. But Google doesn't tell you - the public - that they manipulate the advertising auctions, and they continually illegally profit by taking money away from those web pages and putting it in their own pockets."

He added that the tech giant was a "Goliath of a company" using its power to manipulate the market, and that this was causing harm to every US citizen. But it is not the only tech firm to find itself in regulators' crosshairs - in the UK and Europe in recent weeks, officials have announced plans for new rules aimed at regulating Big Tech. Facebook this month was hit by lawsuits from the Federal Trade Commission (FTC) and nearly all 50 US states, also over monopoly abuse.

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