New York: Tech watchdog groups have joined forces, urging the U.S. Department of Justice to launch an investigation into YouTube, raising concerns about its potential to solidify Google and parent company Alphabet’s dominance in home entertainment.
In a letter addressed to Justice Department antitrust chief Jonathan Kanter, dated Tuesday, the American Economic Liberties Project, Demand Progress, and nine other organizations highlighted YouTube’s ascent as a formidable competitor to cable and streaming services. They expressed apprehension about its widespread pre-installation on smartphones and TVs across the United States.
These groups underscored the need for regulatory scrutiny into YouTube, a platform ranking among the top streaming services in the country. With Google’s already prominent position in internet search and online advertising technology, concerns about YouTube’s impact on market competition are mounting.
“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 groups articulated in their letter.
The proliferation of YouTube TV, the company’s subscription streaming service, further solidifies Google’s “prospects for living room dominance,” according to the advocacy groups.
Responding to these assertions, a YouTube spokesperson noted the platform’s competitive landscape, acknowledging its direct competition with streaming giants like Netflix and Disney+ as well as other video platforms such as Meta’s Instagram and TikTok.
Alphabet’s recent financial disclosures reveal the staggering growth of YouTube, with quarterly ad revenue surpassing $8 billion, marking a 21% increase from the previous year. Google executive Philipp Schindler underscored YouTube’s status as the most-watched U.S. streaming service, citing Nielsen audience analytics data.
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Google is already embroiled in two antitrust lawsuits initiated by the Justice Department and multiple states. One lawsuit accuses the tech giant of monopolizing the online search market, while the other targets its dominance in digital advertising technology. Google has vehemently defended its practices, asserting that its success is rooted in lawful practices.
For the advocacy groups, YouTube represents “the third leg of the stool that supports Google’s monopoly.” Drawing parallels to the ongoing search case, lawyer Lee Hepner from the American Economic Liberties Project highlighted concerns over Google TV’s role as a distribution platform for its streaming service.
Antitrust concerns surrounding Big Tech have persisted across administrations, with cases against Google and Meta Platforms filed during the Trump administration. President Biden’s antitrust enforcers have continued this trajectory with additional cases against Amazon.com and Apple.
