10 US states sue Google for allegedly colluding with Facebook

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Prosecutors of 10 US states, led by the Texas prosecutor, filed an antitrust lawsuit against Google. They accused the IT giant of collusion with the social network Facebook in the online advertising market.

According to Reuters, the plaintiffs argue that the Alphabet holding company, which occupies a third of the global online advertising market, is violating antitrust laws by inflating advertising prices and crowding out competitors. The lawsuit also says that being competitors in online advertising, Google and Facebook coordinated actions at auctions where advertising orders were distributed.

“Google is a trillion-dollar monopoly that brazenly abuses its power to the point of forcing Facebook’s management to agree to a contractual arrangement that undermines the competitive process,” US Attorney Ken Paxton quoted TJ as commenting.

Google called the plaintiffs’ claims groundless and noted that the prices for Internet advertising have decreased over the past 10 years. After that, the revenues of Internet companies from advertisements have decreased. The company added that Google’s revenues in this market are now, on average lower than in the market as a whole, which indicates the existence of competition in it.

We will remind, last week, prosecutors of 46 states of the United States, the District of Columbia, and Guam filed an antitrust lawsuit against the social network Facebook, accusing the IT giant of violating competition by acquiring other companies in order to avoid potential threats to its business from these competitors. Almost simultaneously, the US Federal Trade Commission (FTC) filed a similar lawsuit against Facebook. However, the regulator went further and demanded that the court cancel the deals for the purchase of WhatsApp and Instagram so that both services become independent companies from Facebook.

In October, the US Department of Justice and prosecutors in 11 states filed a lawsuit against Alphabet, which owns Google. The plaintiffs accused Google of abusing its market position to fight competitors. The lawsuit alleges that Google violated the law in order to maintain its position in the Internet search and advertising markets.