Google’s ad market is subject to an upcoming antitrust lawsuit. Still.

Google is once again under fire for its alleged anti-competitive practices in online advertising.

According to Bloomberg, the US Department of Justice could sue Alphabet, Inc, the search engine’s parent company, for antitrust violations as early as next month.

Google repeatedly targeted by antitrust allegations

In October 2020, the Federal Department of Justice filed a lawsuit against the search engine giant, which currently accounts for an 83.84% of the global market. The lawsuit, which was filed during the Trump administration, alleges that Google’s dominance in online advertising constitutes an illegal monopoly.

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In December of that year, attorneys general in 16 states and Puerto Rico also sued Google for state-level violations of antitrust laws. Both of these suits are currently on hold.

Alphabet, Inc. has also been the subject of international antitrust allegations and charges, including three in the European Union, for which it was fined $1.6 billion. In response to continued challenges from European lawmakers, Google has in the past proposed to spin off its business.

Google has denied all the allegations, insisting that its technologies are essential to helping websites, apps and small businesses reach customers.

“Enormous competition in online advertising has made online ads more relevant, lowered ad technology costs, and expanded options for publishers and advertisers,” Google spokesman Peter Schottenfels said in a statement. a statement.

Suit could change how digital ads work

While it’s far too early to speculate on the outcome of this lawsuit, the continued scrutiny Google finds itself under suggests that a shift in digital advertising may be on the horizon.

Google Ads currently operates on a model, where marketers bid on specific keywords. This is then associated with a score of your ad and your landing page called a “quality score.” Higher quality ads can secure placement, even when outbid on a keyword.

Google is currently involved in every step of the ad placement process, which, combined with its massive share of the search market, has given the company according to critics.

If Alphabet, Inc. is forced to divest one or more processes in bid placement conversion, it could result in significant changes to the online advertising model.


Featured Image: Ascannio/Shutterstock

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