Lifted Texas and nine other states sued a company Google yesterday, Wednesday, accusing it of working with a company Facebook is unlawfully violating the antitrust law to boost its online advertising activity.
The states have asked the Alphabet-owned company, which controls a third of the global online advertising industry, for damages, and has also requested structural compensation, which is usually interpreted as forcing the company to sell some of its assets.
The Texas lawsuit marks the second major complaint from regulators against Google and the fourth in a series of federal and state lawsuits aimed at curbing the behavior of major tech platforms that have grown exponentially in the past two decades.
The new measure increases the legal stakes for Google, which is expected to face its third antitrust lawsuit from more than 30 prosecutors on Thursday.
In the separate antitrust lawsuit, online publishers claimed they had lost profits due to Google’s dominance of online ads, and demanded that Google sell a portion of its advertising business.
In its lawsuit, Texas asked the judge to convict Google of violating antitrust law and order the violations to cease.
Google is accused of abusing its monopoly on the digital advertising market, allowing its platform to win ad auctions even when others bid publishers the highest in exchange for ads.
Google has also been accused of working with Facebook, despite the fact that the two companies compete fiercely in the field of online advertising and together account for more than half of the global market.
The lawsuit said: Google sought to end competition and did so through a set of exclusionary tactics, including the illegal agreement with Facebook, which represents its greatest competitive threat.
A spokeswoman for Google said: The company will defend itself against the unfounded allegations in court.
She added: Prices for digital ads have decreased over the past decade, technical fees for advertising are also dropping, and technical fees for Google ads are below the industry average, and these are the hallmarks of a competitive industry.
Google’s advertising sales represent more than 80 percent of Alphabet’s profits, but most Alphabet’s sales and profits come from Google’s high-profit business of placing text ads above search results.