Video-sharing platform and YouTube competitor Rumble has filed a suit against Google over the leading information technology company’s online advertising activities. According to Rumble, Google has engaged in anticompetitive business practices and secured a monopoly over the digital-advertising space by preventing Meta subsidiary Facebook from providing customers with alternatives to its digital-advertising ecosystem.
Rumble’s lawsuit claims that Google also used its financial might to gobble up potential competitors, granting it a monopoly in both the buying and selling of online ads as well as near total control over the systems that facilitate digital ad buying and selling. The video-sharing platform filed the suit in the U.S. District Court for the Northern District of California last week and is seeking damages worth more than $1 billion.
Google does control a significant portion of the online ad ecosystem thanks to offerings such as Google Adsense and draws a whopping three-quarters of all its revenue from its online ad business. Even so, the tech giant dismissed Rumble’s claims of engaging in uncompetitive practices and said that the video-sharing platform is “simply wrong.” Google argued that Rumble also uses dozens of ad services from competing companies on top of Google AdSense, challenging the notion that Google has monopolized the digital-advertising market.
In a statement issued to Reuters, a Google spokesperson said the company would show the court how its advertising products provided value to publishers and helped them generate funding for their digital content. Furthermore, the spokesperson stressed that publishers who use Google tools retain most of their revenue.
This isn’t the first time Google has attracted Rumble’s legal ire. Rumble first sued Google in 2021 for at least $2 billion for reportedly prioritizing itself and sister company YouTube in its search-engine results, but the lawsuit is still in discovery.
The 2021 suit claimed that Google “diverted massive traffic” to its video-sharing arm YouTube by rigging its search algorithms and deprived Rumble of all the traffic, brand awareness, users, uploads, and revenue the company would have earned. It was also filed at the U.S. District Court for the Northern District of California.
Google is also fielding another 2023 civil antitrust suit from the U.S. Justice Department that claims it has monopolized the search and search-advertising segments and is abusing its digital-advertising monopoly. The U.S. Department of Justice argued that Google should be compelled to split off from its digital-advertising arm.
The issues that Rumble raises in its lawsuit could also be impacting other social-media industry players such as Momo Inc. (NASDAQ: MOMO), and they are likely to see how the court decides this matter when hearings conclude.
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