Google is a monopolist in online advertising tech, judge says
Google acted illegally to maintain a monopoly in some online advertising technology, a federal judge ruled on Thursday, adding to legal troubles that could reshape the $1.86 trillion company and alter its power over the internet.
Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia said in a 115-page ruling that Google had broken the law to build its dominance over the largely invisible system of technology that places advertisements on pages across the web. The Justice Department and a group of states had sued Google, arguing that its monopoly in ad technology allowed the company to charge higher prices and take a bigger portion of each sale.
↫ David McCabe at The New York Times
Google has come under fire from all sides in the United States, being declared an abusive monopoly in two different court cases covering search and now online advertising. In this case, Google controls 87% of the online advertising market in the US, which clearly confers monopoly power onto the company. No actual remedies have been proposed yet in this case, though, but breaking up the company is on the table.
Google isn’t the only company facing antitrust court cases in the US, as Amazon and Apple, too, have the US government breathing down their necks. All three of these companies have overtly been trying to buy the favour of the new regime in Washington, but so far, without any success. I doubt we’ll get as far as a breakup, but I definitely think that’s the only real way we’ll ever get proper market forces at work again in the technology market.
Not that any of us are really “consumers” in this online ad business, but of course, monopoly pricing still affects us through higher prices for the goods being advertised. If companies are forced to accept Google’s higher pricing for online ads, those costs will definitely be offloaded to consumers. As such, even breaking up a monopoly that doesn’t seem to affect us personally can still improve our lives by lowering prices.