WASHINGTON: The US Justice Department filed a lawsuit against Alphabet’s Google on Tuesday over allegations that the company abused its dominance of the digital advertising business, according to a court document.
“Google has used anticompetitive, exclusionary, and unlawful means to eliminate or severely diminish any threat to its dominance over digital advertising technologies,” the government said in its antitrust complaint.
The Justice Department asked the court to compel Google to divest its Google Ad manager suite, including its ad exchange AdX.
Google did not immediately respond to a request for comment.
The lawsuit is the second federal antitrust complaint filed against Google, alleging violations of antitrust law in how the company acquires or maintains its dominance. The Justice Department lawsuit filed against Google in 2020 focuses on its monopoly in search and is scheduled to go to trial in September.
Eight states joined the department in the lawsuit filed on Tuesday, including Google’s home state of California.
Google shares were down 1.3 percent on the news.
The lawsuit says “Google has thwarted meaningful competition and deterred innovation in the digital advertising industry, taken supra-competitive profits for itself, prevented the free market from functioning fairly to support the interests of the advertisers and publishers who make today’s powerful Internet possible.”
While Google remains the market leader by a long shot, its share of the US digital ad revenue has been eroding, falling to 28.8 percent last year from 36.7 percent in 2016, according to Insider Intelligence. Google’s advertising business is responsible for some 80 percent of its revenue.
US sues Google on digital ad business dominance, joined by eight states
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US sues Google on digital ad business dominance, joined by eight states
- DoJ accuses Google of abusing its market dominance to “eliminate or severely diminish” competitors, deterred innovation
Malaysia, Indonesia become first to block Musk’s Grok over AI deepfakes
- Authorities in both countries acted over the weekend, citing concerns about non-consensual and sexual deepfakes
- Regulators say existing controls cannot prevent fake pornographic content, especially involving women and minors
KUALA LUMPUR: Malaysia and Indonesia have become the first countries to block Grok, the artificial intelligence chatbot developed by Elon Musk’s xAI, after authorities said it was being misused to generate sexually explicit and non-consensual images.
The moves reflect growing global concern over generative AI tools that can produce realistic images, sound and text, while existing safeguards fail to prevent their abuse. The Grok chatbot, which is accessed through Musk’s social media platform X, has been criticized for generating manipulated images, including depictions of women in bikinis or sexually explicit poses, as well as images involving children.
Regulators in the two Southeast Asian nations said existing controls were not preventing the creation and spread of fake pornographic content, particularly involving women and minors. Indonesia’s government temporarily blocked access to Grok on Saturday, followed by Malaysia on Sunday.
“The government sees non-consensual sexual deepfakes as a serious violation of human rights, dignity and the safety of citizens in the digital space,” Indonesia’s Communication and Digital Affairs Minister Meutya Hafid said in a statement Saturday.
The ministry said the measure was intended to protect women, children and the broader community from fake pornographic content generated using AI.
Initial findings showed that Grok lacks effective safeguards to stop users from creating and distributing pornographic content based on real photos of Indonesian residents, Alexander Sabar, director general of digital space supervision, said in a separate statement. He said such practices risk violating privacy and image rights when photos are manipulated or shared without consent, causing psychological, social and reputational harm.
In Kuala Lumpur, the Malaysian Communications and Multimedia Commission ordered a temporary restriction on Grok on Sunday after what it said was “repeated misuse” of the tool to generate obscene, sexually explicit and non-consensual manipulated images, including content involving women and minors.
The regulator said notices issued this month to X Corp. and xAI demanding stronger safeguards drew responses that relied mainly on user reporting mechanisms.
“The restriction is imposed as a preventive and proportionate measure while legal and regulatory processes are ongoing,” it said, adding that access will remain blocked until effective safeguards are put in place.
Launched in 2023, Grok is free to use on X. Users can ask it questions on the social media platform and tag posts they’ve directly created or replies to posts from other users. Last summer the company added an image generator feature, Grok Imagine, that included a so-called “spicy mode” that can generate adult content.
The Southeast Asian restrictions come amid mounting scrutiny of Grok elsewhere, including in the European Union, Britain, India and France. Grok last week limited image generation and editing to paying users following a global backlash over sexualized deepfakes of people, but critics say it did not fully address the problem.
