Google faces legal challenges by EU, US for monopolistic practices
Date
9/11/2024 9:19:34 AM
(MENAFN) On Tuesday, Google faced legal challenges on two fronts, highlighting ongoing scrutiny of its market practices. In the US, the company is currently on trial for allegedly monopolizing the digital advertising sector, with the US Justice Department accusing Google of using its dominant position to hinder competition. This legal battle underscores broader concerns about Google's influence and control over the digital ad space.
In Europe, Google has also been dealt a blow, as the European Court of Justice upheld a €2.4 billion (USD2.6 billion) fine imposed by the EU Commission. This fine was the result of a 2017 investigation into Google's market practices, specifically its alleged abuse of dominance by prioritizing its own shopping platform in search results for products and price comparisons. The fine reflects the EU's ongoing efforts to regulate and curb the power of major tech companies in the region.
Google's advertising revenue is a significant component of its overall financial performance. Last year, the company generated 77 percent of its total revenue from ads, amounting to USD237 billion out of a total USD305 billion in revenue. This represents a considerable increase from earlier years, with ad revenue climbing from USD70 million in 2001 to USD256 billion in 2021. The surge in revenue was particularly notable during the COVID-19 pandemic, when Google earned USD181 billion in ad revenue in 2020.
Globally, Google dominates the search engine market with a 90.4 percent share, according to Statcounter. Microsoft-owned Bing holds a distant second place with a 4 percent market share, while the Russian search engine Yandex accounts for 2 percent. In the US, Google made USD76 billion in ad revenue last year, constituting 32 percent of its total ad revenue, with the remaining 68 percent derived from international markets.
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