#TECHNOLOGY: U.S. probe of Google's online ad dominance would appease long suffering rivals, publishers - WELCOME TO FACTS ZONE NEWSPAPERS

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#TECHNOLOGY: U.S. probe of Google's online ad dominance would appease long suffering rivals, publishers

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Ad tech firms and publishers have had to stay in the good graces of Google or risk insolvency.

That is why the U.S. Department of Justice is examining the dominance of Alphabet Inc's Google in online advertising as part of a potential antitrust investigation, two sources told Reuters.


Google's control over the market has long hurt the profits of smaller advertising technology companies who must appease the No. 1 online ad firm to be profitable, and online publishers who need Google's search reach and ad tools to build an audience and make money on their content.

The ad market is just one of several areas of possible inquiry.

Google has declined to comment on the potential investigation, but has repeatedly said that it acts in the best interest of its users and offers sufficient warning to industry partners potentially affected by its moves.

Google is expected to capture 37% of the $129 billion spent on online ads in the United States in 2019, compared to 22% for No. 2 Facebook Inc and 10% for No. 3 Amazon.com Inc, according to ad research firm eMarketer.


Digital advertising revenue accounted for about 85% of revenue last year for Google parent Alphabet.

The U.S. government is gearing up to investigate the massive market power of Amazon.com Inc, Apple, Facebook and Google, sources told Reuters on Monday, setting up what could be an unprecedented wide-ranging probe of some of the world's largest companies.

Apple and Facebook did not immediately reply to a request for comment on Monday. Google and Amazon declined to comment.
(Reuters)

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