The US Department of Justice and eight states filed an anti-trust lawsuit this week against Google, alleging it monopolised the country's $279 billion digital advertising market to stifle competition and boost its profit.
The lawsuit, which was filed on Tuesday, aims to break up Google’s online advertising business and unwind its acquisitions of ad exchange DoubleClick in 2008 and ad management technology-maker AdMeld in 2011.
This is the second lawsuit filed by the DoJ against Alphabet-owned Google in just over two years and the first filed under the Biden administration.
The earlier lawsuit, filed in October 2020 under the Trump administration, accused Google of “unlawfully maintaining the monopolies in the market for online searches” and stifling competition in the process. That case is expected to go to trial in September.
Here is a rundown of the latest lawsuit, Google’s response and what it means for big tech companies and ordinary consumers.
The objective of the DoJ lawsuit
The department accused Google of using “anti-competitive, exclusionary and unlawful” means to eliminate or diminish any threat to its dominance over digital advertising technology.
It said Google had corrupted legitimate competition by running a campaign to seize control of the wide range of high-tech tools used by publishers, advertisers and brokers. Google currently keeps at least $0.30 — and sometimes more — out of every dollar advertisers spend.
“Whenever customers and competitors responded with innovation that threatened Google’s stranglehold … Google’s anti-competitive response has been swift and effective … Google has wielded its power across the ad tech industry to dictate how digital advertising is sold, and the very terms on which its rivals can compete,” DoJ said in the 153-page lawsuit.
The latest lawsuit seeks to force Google to divest parts of its digital advertising businesses, including its advertisement exchange.
If that happens, it will eliminate a major source of Google revenue. However, Google would still hold a dominant position in the industry and keep placing ads on its own businesses such as Search, YouTube and Gmail.
Google’s response to the lawsuit
The lawsuit would make it harder for Google to offer efficient advertising tools that benefit publishers, advertisers and the wider US economy, the company said.
“Anti-trust cases should not penalise companies that offer popular, efficient services, particularly in difficult economic times,” Dan Taylor, Google's vice president of global ads, said in a statement.
“We have spent years building and investing in our advertising technology business to support a vibrant, open web. We will vigorously contest attempts to break tools that are working for publishers, advertisers and people across America.”
How big is Google’s advertising business?
Google’s advertising revenue from Search, YouTube and other businesses increased about 3 per cent yearly to about $54.5 billion in the quarter ended on September 30.
The company controls nearly 26.5 per cent of the $279 billion US digital ads market, ahead of Facebook’s parent company Meta and Amazon, according to data from the research firm eMarketer.
The Mountain View, California-based company also dominates the $627 billion global digital ad market, according to recent estimates by eMarketer, with the US representing the biggest piece.
How Google operates in the online ad space
When consumers open any website, Google runs a real-time autonomous auction to find advertisers keen to pay to show their ads.
The technology is called “ad exchange” — a digital marketplace that enables advertisers and publishers to buy and sell advertising space.
To strengthen its position in this domain, Google acquired ad tech firm DoubleClick for more than $3 billion in 2008. Through the transaction, Google acquired a publisher ad server, which had a 60 per cent market share at that time.
In 2011, Google also purchased advertising optimisation platform for publishers AdMeld for nearly $400 million. The company “folded its [AdMeld’s] functionality into Google’s existing products, and then shut down its operations with non-Google ad exchanges and advertiser tools” to eliminate competition, the lawsuit said.
How Google's actions affect regular users
There is no direct impact of Google’s action on most of the consumers, unless they own websites, or if they are in the business of placing ads online.
However, the DoJ said we all pay higher prices, directly or indirectly, because of the lack of competition in the market.
“The harm is clear … website creators earn less, and advertisers pay more, than they would in a market where unfettered competitive pressure could discipline prices.
“This conduct hurts all of us because, as publishers make less money from advertisements, fewer publishers are able to offer internet content without subscriptions, paywalls or alternative forms of monetisation,” the DoJ said.
Tech giants and lawsuits
Tech titans such as Google, Amazon, Apple and Meta are increasingly facing regulatory scrutiny to change their monopolistic practices.
In July, a lawsuit was filed against Apple accusing the iPhone maker of “illegally profiting” from payment card issuers through its Apple Pay policies, allegedly taking up to $1 billion a year in fees in breach of federal anti-trust law.
In June 2021, Google agreed to pay $268 million to French authorities and said it would change the way its online advertising works to settle a 2019 anti-trust case.
In February 2021, it was fined $1.3 million by French authorities for misleading consumers with its ratings of hotels and tourist destinations.
In May 2021, the world’s biggest e-commerce company Amazon was sued by the office of the Attorney General of Washington DC, for reportedly using its dominant market position to cut competition from other platforms, such as eBay, Walmart and even the websites of third-party sellers.
What happens next
Google is expected to challenge the lawsuit being overseen by US District Court Judge Leonie Brinkema. She was one of the judges who delayed former President Donald Trump's executive order restricting immigration into the US.
Google has already introduced a publicity campaign, claiming it abides by competition rules.
“The suit is super well-written building on prior work investigating Google’s market power abuse leveraging advertising technologies,” Jason Kint, chief executive of Digital Content Next, a non-profit trade association representing digital publishers, said on Twitter.
"It's notable there are once again eight bipartisan states signed on, including New York [home of media and advertising industry] and California [home of Google and tech start-ups]."
Six large-scale objects on show
- Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
- The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
- A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
- Frank Lloyd Wright’s 1930s Kaufmann Office
- A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
- Torrijos Palace dome
More from Rashmee Roshan Lall
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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Miguel Cotto world titles:
WBO Light Welterweight champion - 2004-06
WBA Welterweight champion – 2006-08
WBO Welterweight champion – Feb 2009-Nov 2009
WBA Light Middleweight champion – 2010-12
WBC Middleweight champion – 2014-15
WBO Light Middleweight champion – Aug 2017-Dec 2017
THE BIO
Age: 33
Favourite quote: “If you’re going through hell, keep going” Winston Churchill
Favourite breed of dog: All of them. I can’t possibly pick a favourite.
Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?
Favourite colour: All the colours that dogs come in
Breast cancer in men: the facts
1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.
2) Symptoms can include a lump, discharge, swollen glands or a rash.
3) People with a history of cancer in the family can be more susceptible.
4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
MATCH INFO
Burnley 1 (Brady 89')
Manchester City 4 (Jesus 24', 50', Rodri 68', Mahrez 87')
MATCH INFO
Newcastle United 2 (Willems 25', Shelvey 88')
Manchester City 2 (Sterling 22', De Bruyne 82')
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Killing of Qassem Suleimani
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
UAE currency: the story behind the money in your pockets
The%20specs
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Honeymoonish
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Warlight,
Michael Ondaatje, Knopf
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Killing of Qassem Suleimani
All about the Sevens
Cape Town Sevens on Saturday and Sunday: Pools A – South Africa, Kenya, France, Russia; B – New Zealand, Australia, Spain, United States; C – England, Scotland, Argentina, Uganda; D – Fiji, Samoa, Canada, Wales
HSBC World Sevens Series standing after first leg in Dubai 1 South Africa; 2 New Zealand; 3 England; 4 Fiji; 5 Australia; 6 Samoa; 7 Kenya; 8 Scotland; 9 France; 10 Spain; 11 Argentina; 12 Canada; 13 Wales; 14 Uganda; 15 United States; 16 Russia
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
THE DETAILS
Kaala
Dir: Pa. Ranjith
Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar
Rating: 1.5/5
'Shakuntala Devi'
Starring: Vidya Balan, Sanya Malhotra
Director: Anu Menon
Rating: Three out of five stars
The%20Roundup
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
