Politics

Google accused of monopolizing online advertising market

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Attorneys general of several US states have filed a lawsuit against Google, which is accused of illegally monopolizing the online advertising market, Report informs referring to The Wall Street Journal.

The suit alleges the company has deployed strategies to “lock in” publishers and advertisers and help the company’s ad-buying tools win more than 80% of auctions on its exchange, a newly revealed figure.

It gives a window into Google’s overwhelming dominance of advertising, citing Google documents that say the company served 75% of all online ad impressions in the US during the third quarter of 2018.

The suit cites programs, with code names such as Bell, Elmo and Poirot, that helped Google generate more than $1 billion in sales.

Google takes a cut of 22% to 42% of US ad spending that goes through its systems, according to a newly unredacted lawsuit by state attorneys general, shedding new light on how the search giant profits from its commanding position in the internet economy.

The share the Alphabet Inc. subsidiary takes of each advertising transaction on its exchange – a marketplace for ad buyers and sellers – is typically two to four times as much as the fees charged by rival digital advertising exchanges, according to the suit, which is being led by Texas.

Google has called the lawsuit flawed. “This lawsuit is riddled with inaccuracies and our ad tech fees are actually lower than reported industry averages,” said Peter Schottenfels, a Google spokesman.

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