Alphabet, the parent company of Google, has petitioned a judge in the United States to dismiss a case brought forth by American authorities. The accusation revolves around Alphabet’s alleged monopolization of the online advertising market, with the tech giant arguing that the prosecution lacks substantial evidence.
Commencing last year, the lawsuit focuses on Google’s ability to command exceptionally high margins for online advertisements. Additionally, it is claimed that Google, through its advertising tools and access to diverse information, stifles competition from other providers of ad space.
Google’s market dominance underpins these capabilities, with US authorities estimating its market share to be at least 50 percent.
Alphabet asserts that prosecutors have concocted markets specifically for this case, omitting competitors like Facebook, Amazon, and TikTok from their allegations. Alphabet contends that considering these competitors’ advertising activities would significantly lower Google’s estimated market share.
Furthermore, Alphabet points to prior judicial rulings indicating that a company must control at least 70 percent of a market to establish a monopoly.
This isn’t the first antitrust case against Alphabet in the United States, as the company faced similar allegations several years ago regarding its dominance in the search engine market.
European authorities are also scrutinizing big tech companies. Last month, the European Commission initiated an investigation into Apple, Google, and Meta for purported violations of rules aimed at curbing their power.
The EC’s concerns include Apple and Google hindering app developers by reportedly obstructing them from directing users to offers outside their own app stores without additional payments.
Echoing concerns in the US, the EC is examining whether Google adequately refers users to services from competitors in its search results, with fears that the company may prioritize its own services, such as Google Shopping and Google Flights.