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Will Google Hit the Monopoly Wall in Court Again
Nram Studios
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9/14/2024
Will Google Hit the Monopoly Wall in Court Again
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00:00
Will Google hit the monopoly wall in court again?
00:07
A month has passed since a judge determined that Alphabet's Google has controlled a monopoly
00:12
in the web search space.
00:14
Now, the tech titan is returning to the legal battlefield to grapple with U.S. prosecutors
00:19
for the second time over claims that the company's lucrative advertising business and technology
00:24
have functioned as a monopoly, charging customers higher ad prices.
00:29
While big tech could be getting its comeuppance, it might be at the expense of liberty.
00:34
Google pursues world ad domination.
00:36
Julia Tarver Wood, an attorney with the Justice Department's Antitrust Division, alleged
00:41
that Google employed various monopoly-building strategies.
00:45
According to its opening statement, the corporation eliminated competitors through acquisitions,
00:51
controlled transactions in the online ad industry, and locked in advertisers and publishers to
00:56
use its products.
00:58
Google is not here because they are big, they are here because they use that size to
01:01
crush competition, she said.
01:04
Based on Reuters reporting at a court in Alexandria, Virginia, one monopoly is bad enough.
01:10
But a trifecta of monopolies is what we have here.
01:13
However, Google's lead attorney, Karen Dunn, shrugged off the accusations, telling the
01:19
court that the case was based on ancient history.
01:23
She likened the legal proceedings, which involved a coalition of several states and were launched
01:27
on September 9, to a time capsule with a BlackBerry, an iPod, and a Blockbuster video card.
01:34
In addition, Google is expected to assert that the Department of Justice's crusade will
01:39
boost advertising costs, slow innovation, and harm businesses' efforts to attract eyeballs
01:44
to their websites.
01:46
Google is now manufacturing digital tools connecting to competitors' platforms as the
01:50
digital ad space transitions to apps and streaming, the defense said.
01:55
While its tech infrastructure facilitates thousands of online ad sales every second,
02:00
annual corporate reports suggest the company's ad division has been slumping.
02:05
From 2021 to 2023, Google Networks, comprised of AdSense and Google Ad Manager, reported
02:12
revenues sliding from $31.7 billion in 2021 to $31.3 billion in 2023.
02:20
The latest case comes soon after the tech juggernaut was defeated in the District of
02:24
Columbia when a judge ruled that Google's search engine was a monopoly.
02:29
The company achieved the same, the judge stated, by paying companies billions of dollars per
02:34
year to lock in its products as the default search engine.
02:38
In a December case, a separate judge concluded that Google's Android app store was a monopoly.
02:43
Overseas, the European Union's top court agreed with a $2.64 billion fine that favored
02:49
its native shopping search results over rival services, describing the practice as discriminatory.
02:56
Court of Justice judges argued they wanted to prevent the maintenance or growth of competition
03:01
in a market in which the degree of competition is already weakened, precisely because of
03:05
the presence of one or more undertakings in a dominant position.
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