According to a source, federal prosecutors are in the last stages of drafting an antitrust case against Google and want to submit it in September.
For some years, the Justice Department has been scrutinizing the IT titan.
According to a source, federal prosecutors are in the last stages of drafting an antitrust case against Google and want to submit it in September.
For some years, the Justice Department has been scrutinizing the IT titan.
Google has rejected the claims and has asked the court to dismiss the case; a hearing is planned for later this month.
Bloomberg reported on Tuesday that another complaint against Google might be brought next month, this time accusing the company of monopolizing digital advertising.
According to three sources, investigators from the Justice Department’s antitrust division are now interrogating web publishers in order to complete the specifics for the case.
According to the sources, the interviews are follow-ups to past conversations. It is unknown if the complaint will be brought in Washington, DC or New York City, where previous claims against Google are already being heard.
Google’s representative denied the business had a monopoly, citing “enormous competition in internet advertising.”
Google, according to Peter Schottenfels, also supports small enterprises.
‘Our advertising solutions help websites and applications support their content while also allowing small companies to reach consumers all over the globe,’ Schottenfels said.
‘Extreme competition in internet advertising has increased the relevance of online advertisements, decreased ad tech expenses, and extended possibilities for publishers and advertisers.’
Google’s advertisements are critical to the company’s financial line.
On July 26, Google’s latest financial report revealed that search advertisements helped parent Alphabet Inc close to Wall Street sales projections, driving shares up on reassurance that the world’s largest seller of online advertising may do better than smaller competitors in the event of a worldwide recession.
On a teleconference with financial analysts, a trio of Alphabet executives sounded cautious, using the words ‘uncertain’ or ‘uncertainty’ at least 13 times to characterize the economy. Ad revenues on YouTube rose at the weakest rate since reporting started in 2018.
Investors, on the other hand, were focused on the fact that the company’s main moneymaker, Google search, actually outperformed forecasts in the second quarter.
Following the report, Alphabet shares rose 5.5% in after-hours trade.
‘Despite the disappointing quarter, investors breathed a sigh of relief since expectations were so low,’ said Jesse Cohen, senior analyst at Investing.com.
Snap Inc shares plunged more than 25% last week after the firm missed revenue forecasts and warned of an ad market downturn.
Alphabet officials said that Google was not immune to the downturn, which was caused by customers experiencing product shortages, decreased demand, and a number of other issues.
Rising salaries, as well as rising gasoline and other commodity expenses, have caused some ad purchasers to cut down on marketing this year.
However, Google has fared better than social networking businesses in the face of adversity. It generates money in the ad market via a wider range of services, and search advertising may be less costly for clients to develop since they often include just text.
Clients may favor search advertisements since the marketing is often targeted at those who are actively looking for similar things, resulting in higher returns.