Google Faces Antitrust Trial Over Ad Technology Dominance - 1

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Google Faces Antitrust Trial Over Ad Technology Dominance

  • Written by Kiara Fabbri Former Tech News Writer
  • Fact-Checked by Justyn Newman Former Lead Cybersecurity Editor

Google is set to face the U.S. Department of Justice (DOJ) in court over accusations of monopolizing the display advertising market, a trial that starts today in Alexandria, Virginia. The DOJ alleges that Google violated antitrust laws by abusing its control of ad technology, as reported by The New York Times (TNYT).

The DOJ argues that Google’s dominance in the $677 billion display advertising market allows it to manipulate prices, driving up costs for advertisers while paying less to websites that rely on ad revenue, as reported by Bloomberg .

Furthermore Bloomberg reports that the DOJ claims that Google, which controls ad sales from start to finish, forces advertisers and publishers to use its tools. This allows the company to take a significant cut—about $36 of every $100 spent through its services.

Google denies the allegations, asserting that its tools work efficiently and competitively with other products. The company argues that its technology is chosen because of its superior integration, security, and reliability, rather than through any coercive practices, as reported by Bloomberg.

The DOJ is expected to highlight how Google’s dominance in digital ad space has especially hurt industries like news publishing, where businesses struggle to survive while Google profits from their ad sales, notes TNYT.

A government victory could lead to the forced sale of Google’s ad tech acquisitions, including DoubleClick, a move that would reshape the online advertising landscape, as noted by TNYT.

This case could also set a precedent for future antitrust actions, potentially targeting other tech giants like Apple, which has also been accused of stifling competition, TNYT adds.

The U.S. antitrust trial against Google over its dominance in the advertising market mirrors similar accusations being made by the UK’s Competition and Markets Authority (CMA). The DOJ and CMA both claim that Google’s practices create an unfair playing field for competitors, driving up prices for advertisers while limiting alternatives for publishers.

In both cases, Google defends its practices, arguing that its ad tools are widely used because they are more efficient and beneficial for publishers and advertisers. However, regulators in the U.S., UK, and Europe continue to push back, potentially leading to major shifts in the online advertising landscape.

Company Bending Spoons to Lay Off 75% of WeTransfer Staff - 2

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Company Bending Spoons to Lay Off 75% of WeTransfer Staff

  • Written by Andrea Miliani Former Tech News Expert
  • Fact-Checked by Justyn Newman Former Lead Cybersecurity Editor

The tech company Bending Spoons recently confirmed its plan to lay off 75% of the staff of its recently acquired business WeTransfer, a Dutch company founded in the Netherlands in 2019.

TechCrunch reached out to Bending Spoons—also parent company to the online platforms Meetup and Evernote—to confirm the rumors of layoffs. The Italian-based business admitted that an upcoming round of layoffs will come after the analysis of the different regulations of the countries where the staff—estimated around 350 members—is located.

WeTransfer was acquired earlier this year, in July, but the price was not disclosed. Luca Ferrari, Bending Spoons CEO, explained that after acquiring a company, they go through its structure and design a vision for its future.

“Once the vision is clear, we try to close the gap between the status quo and the vision as quickly and as fully as we can,” said Ferrari to TechCrunch, “Typically, doing so involves making major changes to many areas, including the organization. While we don’t enjoy making painful or unpopular decisions, we’re prepared to do so when we believe it’s the right thing to do to help the business thrive.”

According to Reuters , Ferrari also said that they couldn’t provide more information on the future of the company at the moment. “I won’t be more specific at this stage because the layoff hasn’t been fully defined yet,” said Ferrari on Sunday.

In August, WeTransfer announced a new mobile update , the platform now allows users to extend the validity of a link, an innovative feature since the company was known for its fast-expiring links.