Google in Problem Over Alleged Monopoly in Online Advertising Market, Trial Begins Against Company, Facebook, Instagram
The case is important for efforts to prevent abuse of dominant position by big tech companies. The prosecution has said that Google has hatched a complex plan through acquisitions to monopolize website advertising tools. However, the company has denied these allegations. Alphabet, which runs Google, says that this is hindering its technology and efforts to provide service to customers. The company said prosecutors ignored that the online advertising market is shifting toward apps and connected TV, in which Google faces stiff competition.
Last month, a US court had said in its decision that Google has violated the anti-trust law. It has spent billions of dollars to become the world’s default search engine and has created an illegal monopoly in Internet search. This was the first major victory for American federal authorities against the market dominance of big tech companies.
This decision opened the way for another lawsuit to determine major changes in Google’s functioning. In the US, Washington District Judge Amit Mehta had said in his decision, “The court has come to the conclusion that there is monopoly on behalf of Google.” However, this decision of the District Court can be appealed. Due to this, the share price of Alphabet also declined. Last year, Google’s advertising revenue accounted for 77 percent of Alphabet’s total sales. In the last few months, the US government has tightened the noose on big tech companies. Earlier, legal cases were also filed against Meta Platforms, which controls social media site Facebook, and e-commerce company Amazon.
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