Google Has Illegal Advertising Monopoly, Judge Rules

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Imran Rahman-Jones

Technology reporter

A US judge has ruled tech elephantine Google has a monopoly successful online advertizing technology.

The US Department of Justice, on pinch 17 US states, sued Google, arguing nan tech elephantine was illegally dominating nan exertion which determines which adverts should beryllium placed online and where.

This is nan 2nd antitrust lawsuit Google has mislaid successful a year, aft it was ruled nan institution besides had a monopoly connected online search.

Google said it would entreaty against nan decision.

"Publishers person galore options and they take Google because our advertisement tech devices are simple, affordable and effective," nan firm's caput of regulatory affairs Lee-Ann Mulholland said.

US territory judge Leonie Brinkema said in nan ruling Google had "wilfully engaged successful a bid of anticompetitive acts" which enabled it to "acquire and support monopoly power" successful nan market.

"This exclusionary behaviour substantially harmed Google's patient customers, nan competitory process, and, ultimately, consumers of accusation connected nan unfastened web," she said.

Google mislaid connected 2 counts, while a 3rd was dismissed.

"We won half of this lawsuit and we will entreaty nan different half," Ms Mulholland said.

"The tribunal recovered that our advertiser devices and our acquisitions, specified arsenic DoubleClick, don't harm competition."

The ruling is simply a important triumph for US antitrust enforcers, according to Laura Phillips-Sawyer, a professor astatine nan University of Georgia School of Law.

"It signals that not only are agencies consenting to prosecute but besides that judges are consenting to enforce nan rule against large tech firms," she said.

She said nan verdict sets an important ineligible precedent and is apt to impact decision-making successful firm America.

Google's lawyers had based on nan lawsuit focused excessively overmuch connected its past activities, and prosecutors ignored different ample advertisement tech providers specified arsenic Amazon.

"Google has many times utilized its marketplace powerfulness to self-preference its ain products, stifling invention and depriving premium publishers worldwide of captious gross needed to prolong high-quality publicity and entertainment," said Jason Kint, caput of Digital Content Next, a waste and acquisition relation representing online publishers.

Google owns ample companies connected nan purchaser and seller sides of nan online advertizing market, arsenic good arsenic an advertisement speech which matches request and supply.

Internet users will not announcement a quality online arsenic a consequence of nan decision, said Anupam Chander, professor of rule and exertion astatine Georgetown University.

But it affects "the section of monies betwixt advertisers, publishers, and advertisement work providers".

"The judge seems consenting to bid structural changes successful Google's advertisement speech practices, which whitethorn impact Google's bottommost statement somewhat, but don't look to needfully frighten its halfway worth proposition arsenic an advertizing middleman," he added.

In an ongoing bid of antitrust lawsuits, nan US authorities argues Google and its genitor institution Alphabet should beryllium surgery up - which could see trading disconnected parts of nan institution specified arsenic nan Chrome browser.

The US lawsuit will now move to a 2nd "remedies" phase, which could besides lead to Alphabet being surgery up, said John Kwoka, a professor of economics astatine Northeastern University.

In September, nan UK's title watchdog provisionally found Google was utilizing anti-competitive practices to predominate nan marketplace for online advertizing technology.

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