Google is experiencing a regulatory push alongside other major tech firms, as authorities intensify efforts to address monopolistic practices in the industry.
In a significant development, Google has been found guilty in an online ad monopoly case, highlighting the increasing scrutiny faced by the tech giant. This ruling is part of a broader regulatory movement targeting several major tech companies, including Meta and Apple, as authorities seek to rein in their market power.
Google Found Guilty of Monopoly Practices
In a landmark ruling, a court determined that Google “willfully acquired and maintained monopoly power” in two critical areas: publisher ad servers and ad exchanges. These systems are essential for how websites sell digital advertisements, which serve as a vital revenue stream for many news organizations and online content creators. The court found that Google manipulated this ecosystem to eliminate competition, resulting in fewer choices and higher costs for publishers and consumers.
The judge stated, “In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web,” according to a Reuters report. Although the ruling did not extend to a third area concerning advertiser ad networks, it opens the door for regulators to demand significant structural changes, potentially even breaking up parts of Google’s business.
Meta Faces Antitrust Trial
Meta, the parent company of Facebook, WhatsApp, and Instagram, currently faces a high-stakes antitrust trial initiated by the Federal Trade Commission (FTC). The FTC alleges that Meta acquired rivals like Instagram and WhatsApp to eliminate competition and establish an illegal monopoly over “personal social networking.” CEO Mark Zuckerberg defended these acquisitions as efforts to foster innovation and enhance user experience. However, leaked internal emails from 2012 suggest a different intent, with one message indicating a desire to “neutralize a competitor.” If the FTC prevails, Meta may have to divest Instagram and WhatsApp.
