(SAN FRANCISCO) — A group of states led by Texas is expected to announce an investigation into Google on Monday to examine whether the Silicon Valley tech giant has gotten too big and effective at stomping or acquiring rivals.
The probe is the latest blow against big tech companies as antitrust investigations ramp up in the U.S. and around the world. A separate group of states announced an investigation into Facebook’s dominance on Friday. The Department of Justice , the Federal Trade Commission and Congress are also conducting probes.
Texas Attorney General Ken Paxton has said only that the investigation will look at “whether large tech companies have engaged in anticompetitive behavior that stifled competition, restricted access, and harmed consumers.” Reports in The Washington Post and The Wall Street Journal say Google will be the primary target.
Google expects state attorneys general will ask it about past similar investigations in the U.S. and internationally, senior vice president of global affairs Kent Walker wrote in a blog post Friday .
Google’s parent company, Alphabet, has a market value of more than $820 billion and controls so many aspects of the internet that it’s hard to imagine surfing the web for long without running into at least one of its services. Experts believe the antitrust probe could focus on at least one of three aspects of Google’s business that have caught regulators’ eyes.
An obvious first place to look could be online advertising. Google will control 31.1% of global digital ad dollars in 2019, according to eMarketer estimates, crushing a distant second place Facebook. And many smaller advertisers have argued that Google has such a stranglehold on the market that it becomes a system of whatever Google says, goes — because the alternative could be not reaching customers.
“There’s definitely concern on the part of the advertisers themselves that Google wields way too much power in setting rates and favoring their own services over others,” said Jen King, the director of privacy at Stanford’s Center for Internet and Society.
Critics often point to Google’s 2007 acquisition of online advertising company DoubleClick as pivotal to its advertising dominance.
Europe’s antitrust regulators slapped Google with a $1.7 billion fine in March unfairly inserting exclusivity clauses into contracts with advertisers, disadvantaging rivals in the online advertising business.
Another visibly huge piece of Google’s business is its search platform, often the starting point for millions of people …read more
Source:: Time – Technology