US sues Google to break up tech giant's ad unit

WASHINGTON: The US Department of Justice and eight states filed a lawsuit against Google on Tuesday over alleged anti-competitive business practices. The lawsuit seeks to break Google's alleged monopoly over the entire system of online advertising and alleges that it harms advertisers, consumers and even the US government.

The government alleged in the complaint that Google wanted to 'neutralize or eliminate' competitors in the online advertising market through the acquisition. Google's anti-competitive practices make it difficult for advertisers to use other competitors' offerings.

It is believed that there is now an exercise to rein in big tech companies in America. Attorney General Merrick Garland said at a news conference Tuesday that monopolies harm the free and fair markets on which our economy is based. They hurt producers and workers, and they raise costs for consumers.''

Alphabet Inc., Google's parent company, said in a statement that the lawsuit would slow innovation, raise advertising fees and hurt the growth of thousands of small businesses and publishers. Currently, digital advertising accounts for 80 percent of Google's revenue.

The Competition Commission of India had also fined Google Rs 1,337 crore for abusing its dominance in the mobile phone ecosystem through Android. Google had approached NCLAT for interim relief against this order. NCLT rejected the appeal. After this, Google approached the Supreme Court. However, even there he did not get relief. A bench headed by Suprik Chief Justice DY Chandrachud gave Google a week's time to deposit 10 per cent of the Rs 1,337 crore penalty as per the CCI order.

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