Google and Facebook Enter Secret Deal To Dominate Digital Marketing Industry: Class Action
The two tech giants are involved in a slew of complaints involving claims of engaging in anticompetitive behavior, with both of them aiming to eventually monopolize the digital advertising market space.
Tech Giants Partner To Push Off Competition
Search engine giant Google and social media behemoth Facebook are facing a series of lawsuits filed by disgruntled local small-time publishing companies arguing that the two big tech corporations are actively engaging in antitrust behavior.
Plaintiffs Flag Publications, Gale Force Media, and WV News are all accusing both Google and Facebook of having a ‘secret deal’ with each other in a bid to gain eventual control in the digital marketing market.
They argue that Google is pushing small-town newspapers out of business all over the country with its business operations that include anti-competitive behavior.
Additionally, the lawsuits filed by the trio share that Google was able to consolidate its grip in the digital market space by enforcing hundreds of acquisitions and mergers over the past few years.
The search engine company is then able to have a hand in controlling all of the members and stakeholders in the online marketing space.
Buyers, brokers, and sellers were absorbed and integrated into the company’s sphere of influence.
Not only that, the complainant publications argue that Google didn’t content itself with its tight hold in the industry.
The Mountain View company reportedly colluded with its fellow Internet company and competitor Facebook to cement its dominance on a worldwide scale.
“I Scratch Your Back, You Scratch Mine”
Allegations include claims that the two companies engaged in a hidden agreement to continue their dominance in the sphere.
In the alleged confidential deal, Google agreed to give Facebook preferential treatment in its ads bidding through its servers.
In exchange, Facebook would then offer these bids with the knowledge that their offer would be given special consideration.
The local publishers are accusing the two companies of violating the Sherman Act along with counts of unlawful exercise of monopoly power, unjust enrichment, and the like.
They are seeking damages and want the court to order Google and Facebook to halt their illegal anti-competitive activities.
News of companies’ alleged antitrust or anticompetitive behavior is nothing new in the United States.
But what exactly is it? Law in the U.S. dictates that no company or organization should have a single stronghold in a given industry.
Legislators want to provide an avenue for other competitors to provide their alternative products and services in order to promote healthy competition.
Several government offices are tasked to ensure that companies don’t violate the protections guaranteed by Congress.
However, time and time again, many business entities are yet to fully abide by the law.
Most of the news that you may hear about antitrust cases and investigations usually involve large corporations who are involved in illegal acts to establish a monopoly in their field or retain their already established dominance.
Fighting The Big Corporations
In this case, local media companies fear that large tech corporations are encroaching on many of the freedoms guaranteed by a free economy-freedom of speech and healthy market competition among players.
Filed separately in courts all over the East Coast, the Google And Facebook Antitrust Press Industry Lawsuits argue that media giants Google and Facebook are attempting to establish dominance in the digital marketing sphere which would eventually kill off local publications nationwide.
These smaller players will not fare well in a market being manipulated and controlled by the two, the lawsuits argued.
The complaints came after a Congress subcommittee conducted an investigation about tech companies and their influence in the digital advertising space.
Representatives then found out that several companies have engaged in antitrust and monopolistic tendencies that impacted America’s free press.
Editor’s Note on Google & Facebook Antitrust Class Action Lawsuit 2021:
This article aims to give you the latest news on the antitrust class action lawsuit filed by independent publishing entities against giants Facebook and Google.
Case Name(s) & No. (s): Clarksburg Publishing Company v. Google, LLC and Facebook, Inc.; Case 1:21-cv-00051-IMK; Flag Publications, Inc. v. Google, LLC, and Facebook, Inc,; Case No. 1:21-cv-00965-SAG; and, Gale Force Media, LLC v. Google, LLC and Facebook, Inc.; Case No. 2:21-cv-09716-WJM-ESK
Jurisdiction: Different federal courts in the United States
Products/Services Involved: Digital marketing services
Allegation(s): Facebook and Google have conducted illegal antitrust behavior to favor each other and establish a monopoly in the industry, harming small publishing companies in the process.
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