San francisco/WASHINGTON-
Advertising technology companies and publishers have to maintain a good reputation for Google, otherwise they will face the risk of bankruptcy.
That's why AmericaS.
Two sources told Reuters that as part of a potential antitrust investigation, the Justice Department is reviewing Google's dominance in online advertising by Alphabet Inc.
Google's control of the market has long damaged the profits of some small advertising technology companies.
Online advertising companies are profitable and online publishers need Google's search scope and advertising tools to build audiences and make money on their content.
The advertising market is just one of several areas that may be investigated.
Google declined to comment on potential investigations, but repeatedly said its behavior was in the best interests of users and provided adequate warning to industry partners who might be affected by its actions.
Google is expected to account for 37% of US $129 billion in online advertising spending in 2019, compared with US $ 22% in advertising spending.
2 Facebook Inc and 10%3 Amazon.
According to eMarketer, an advertising research firm.
Digital advertising accounts for about 85% of Google's parent company Alphabet's revenue last year. The U. S.
The government is preparing to look into the huge market power of Amazon.
Com Inc. , Apple, Facebook and Google have built an unprecedented scale, sources told Reuters on Monday.
A wide survey of some of the world's largest companies.
Apple and Facebook did not immediately respond to requests for comment on Monday.
Google and Amazon declined to comment.
Unrestricted growthS.
Despite several opportunities, the government has done little to slow down the dominance of Google's advertising market.
In 2007, the Federal Trade Commission approved Google's $3.
DoubleClick, a 1 billion acquisition of software company, said it would not significantly reduce competition. in 2010, Google's acquisition of AdMob for $0. 75 billion achieved the same results.
These deals have led Google's tools to dominate how businesses buy and sell ads on the Internet.
Google's marketing platform is the main way for large advertisers to buy ads, while Google's advertising manager is the most widely used service among publishers selling advertising space on websites or apps.
The company also has a Chrome web browser and an Android mobile platform, the two largest gateways on the Internet.
Its search and YouTube properties are the two biggest ads
Supported applications.
Smaller advertising technology vendors and website owners say Google's power allows it to dominate industry policies and practices in ways that crowd out companies and support itself.
"I'm worried (Google is)
Andrew Buckman, chief operating officer of British advertising company Sublime, said: "from control of users to control of advertising display, it dominates all digital advertising . ".
"Justice is looking at this, and it's good.
"In the fierce situation last year, Google asked websites using its technology to comply with a new European privacy law, and major news sites said the law was too strict in its interpretation of the rules, they will lose their income.
Some critics, including German digital press Axel Springer, declined to comment on the United States. S.
But the media industry association says they are happy to see the move.
At the Justice Department's advertising competition seminar last month, Breitbart News Network chief executive Larry Solov said the Justice Department's antitrust action against Google was not "strictly regulated ".
"There is no advertising and tech company, especially a company with a recognized opinion bias, that should control the winners and losers in publishing," Solov said of Google . ".
This year, Google announced changes to Chrome, which will affect how advertisers track users online, limiting data collection and revenue in the industry.
The plan, along with similar initiatives related to the look and feel of advertising last year, drew attention from smaller competitors, including Sublime and Rumble, who did not respond to requests for comment.
Brian O'Kelley, former chief executive of advertising technology company AppNexus, told Reuters on Sunday that he was forced to sell the company to AT&T last year because of Google's monopoly on the market &
AppNexus is valued at $1.
According to The Wall Street Journal at the time, the purchase of 6 billion pounds.
One of O'Kelley's problems is that in 2015, Google began asking advertisers to buy YouTube ads through their own ads.
Buying the platform effectively prevents companies such as AppNexus from participating in the transaction.
O'Kelley says it's hard to compete because Google has a dominant search and video site.
"Google's monopoly forced me to sell my business," he said . "
O'Kelly said investigators will face a daunting task in coordinating antitrust and privacy issues.
Limiting data collection tends to be beneficial for companies with user relationships such as Google and Facebook, rather than lagging companies. the-
Scenario software vendor.
"Privacy laws are good for monopolists," said O'Kelly . ". (
Said Paresh Dave Diane Bartz;
It would be easier for Sheila danger;
Edited by Chris Sanders and batch mccull)