Watchdog organizations focused on technology and competition have urged the US Department of Justice to look into YouTube, arguing that the video-streaming service might give Google (GOOG) and its parent firm, Alphabet, a monopoly on home entertainment.
The American Economic Liberties Project, Demand Progress, and nine other organizations voiced concerns about YouTube’s pre-installation on smartphones and TVs sold in the United States, as well as its growth as a competitor to cable and streaming services, in a letter dated Tuesday to Jonathan Kanter, the head of the Justice Department’s antitrust division.
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One of the most popular streaming sites in the US, YouTube, was urged to be looked into by the groups by the regulator. Google is a market leader in online advertising technology and already controls a large portion of the internet search market.
“YouTube has a decade-long record of using its dominance across numerous markets to crowd out competitors, lock in customers, and force the purchase of bundled services,” the organizations said.
As the company’s subscription streaming service, YouTube TV, grows, so do Google’s “prospects for living room dominance,” according to the groups.
“Anyone looking for something to watch can see this space is very competitive,” a representative for YouTube stated, noting that the firm competes with other video platforms including Meta’s Instagram and TikTok as well as streaming services like Netflix and Disney+.
Over $8 billion in YouTube ad revenue was revealed by Alphabet in April, a 21% increase over the same month the previous year.
Citing data from audience analytics company Nielsen, Google CEO Philipp Schindler claimed at the time that the platform had been the most watched streaming service in the United States for more than a year.
Google is now defending against two antitrust cases that the Justice Department and other states have filed. One says the business controls the online search industry, while another asserts it controls the digital advertising technology sector.
Google disputed both claims, claiming that it used legal methods to achieve its accomplishments.
The advocacy groups claim that YouTube is “the third leg of the stool that supports Google’s monopoly.”
Attorney Lee Hepner of the American Economic Liberties Project likened the groups’ concerns regarding YouTube to the actions contested in the search case, in which antitrust regulators claim that Google’s dominance over online search has been maintained by multibillion-dollar revenue-sharing agreements with smartphone manufacturers.
“What is Google TV if not principally a distribution system for Google’s own streaming service?” stated Hepner.
President Donald Trump’s administration launched lawsuits against Google and Facebook parent Meta Platforms, demonstrating how antitrust worries over Big Tech have transcended administrations.
Subsequently, the antitrust prosecutors led by President Joe Biden filed a second lawsuit against Google, as well as lawsuits against Amazon.com and Apple.