The US government is suing Google for its monopoly position in the advertising market

The US government and eight US states have sued Google for its power in the advertising market. The governments demand that Google divests certain advertising divisions and stops its “anti-competitive behavior”.

Google according to governments deliberately taken over the advertising market in recent decades and is said to have hindered competition in the process. The governments point out that Google now owns the service that allows websites to offer ad space, tools that allow advertisers to buy that ad space, and the exchange that links publishers to advertisers.

The company would therefore have acquired a monopoly position and, according to the authorities, is also abusing it. Publishers and advertisers who want to use competing services are penalized by Google, for example, according to the governments. Partly because of this, competitors would not be able to gain a foothold, as a result of which the free market could not be fair. “The damage is clear: website developers earn less and advertisers pay more.” At the same time, Google’s monopoly would hinder innovation.

The states and the national government want Google to pay damages and stop the anti-competitive behavior. Google would also have to divest certain advertising components, including the publisher ad server and the ad exchange. Google’s advertising power isn’t just under attack in the US; in 2021, the European Commission announced that it would investigate whether Google violates competition rules by favoring its own advertising technology.