Video sharing platform, Rumble RUM has initiated legal proceedings against tech giant, Google GOOGL GOOG, accusing it of monopolistic practices in its digital advertising products. Rumble is seeking damages in excess of $1 billion.
What Happened: Rumble, the technology and advertising partner for Trump Media & Technology Group DJT, alleges Google has monopolized the ad stack by acquiring companies across the chain, Reuters reported on Tuesday. The lawsuit asserts that Google represents both ad buyers and sellers while also controlling the exchange connecting these parties.
Rumble adds that Google has preserved its monopoly by striking a deal with Meta’s Facebook to prevent it from offering alternatives to Google’s ad tech ecosystem. Google has denied these allegations, terming them as “simply wrong” and asserting that Rumble uses “dozens” of competing ad services along with Google’s ad manager.
The lawsuit was lodged late Monday in the U.S. District Court for the Northern District of California.
The U.S. Justice Department also filed a lawsuit against Google last year, alleging abuse of dominance in the digital advertising business and suggesting that Google should be forced to sell its ad manager suite.
Why It Matters: This isn’t the first time Google has faced legal action over its advertising practices. In February, Google was hit with a $2.3 billion lawsuit from 32 media groups, including Axel Springer and Schibsted, accusing the tech giant of causing financial losses through its digital advertising practices.
Previously, in January 2021, Rumble sued Google for allegedly rigging its search algorithms to prioritize YouTube over Rumble in its search results. Rumble also claimed that Google’s deal to pre-install YouTube on Android devices has unfairly deprived Rumble of viewers.
In June, Rumble announced its intentions to sue Google following a high-profile live stream by Andrew and Tristan Tate, titled “Emergency Meeting,” broadcasted on Rumble. Despite drawing an audience of 500,000 live viewers, a Google search for Tate’s streaming event led users to a YouTube video, rather than the original Rumble broadcast, sparking accusations of anti-competitive behavior favoring Google-owned YouTube.
Price Action: On Monday, GOOGL closed 0.29% higher at $169.14 while GOOG closed 0.36% higher at $170.90. On the other hand, RUM closed 3.10% higher at $6.980, according to Benzinga Pro.
Photo: Courtesy Jonny Gios via Unsplash
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