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· Posted on
September 13, 2024

Google's ad empire goes on trial after the Department of Justice tries to break its chokehold on our tech lives

This week, the US Department of Justice (DOJ) has begun its second antitrust case against Google in a matter of months.

What's the key learning?

  • EU had been busy monitoring the big tech, and in fact, the they hit Google with a 2.4 billion euro fine, then hit Apple with a 13 billion euro tax bill just earlier this week.
  • Now, the US breathing hard on Google's necks may be quite a problem for them especially that Google’s ad business last year brought in over $200 billion USD.
  • Looks like the big techs playing fast and loose with the rules isn’t going to be as easy as it once was.

👉 Background: Alphabet, Google's parent company, may be a tech giant worth close to $2 trillion USD, but lately it’s been facing a range of legal disputes. There was its battle with Epic Games, which it lost, as well as three antitrust cases in the European Union — all of which it lost, but appealing.

👉 What happened: This week, the US Department of Justice (DOJ) has begun its second antitrust case against Google in a matter of months. The DOJ alleges that Google is illegally monopolising the market for digital ads technology by acquiring its competitors when they become a threat, and forcing website publishers to use Google’s tools.

👉 What else  Google reckons there’s nothing illegal about its practises - it's just the best in the biz. But the US DOJ seems to have taken a leaf out of the EU regulators book because it has started to come down on Google haaaaaard.

What's the key learning?

💡While the EU has largely led the charge in keeping tech giants in check, the US is starting to catch up.

💡Last month’s case against Google was the first time US prosecutors have successfully launched an antitrust case against a tech platform like Google. But this has emboldened them to take on other big tech companies, like pursuing:

  • Apple's monopoly of the smartphone market
  • Amazon's illegal block of competitors to maintain its market power
  • Meta's actions which have contributed to increasing youth mental health issues.

💡While the US is one of the biggest markets for tech giants like Google, they’re starting to realise that their relationship with US regulators is changing.

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