Watchdog groups are calling on the Justice Department to investigate YouTube for antitrust violations

Several technology and competition watchdog groups are calling on the U.S. Department of Justice (DOJ) to open an antitrust investigation into YouTube, the popular video-sharing platform owned by Google’s parent company Alphabet. The call comes amid growing concerns about YouTube’s growing influence on the home entertainment sector.

As initially reported by Reuters, the initiative is led by the American Economic Liberties Project and Demand Progress, along with nine other advocacy groups. In a June 11, 2024 letter to Deputy Attorney General Jonathan Kanter, these groups outlined their concerns about YouTube’s expansive market power and potential anti-competitive practices.

Watchdogs say YouTube’s dominance is not limited to online video streaming but is also spilling over into broader home entertainment markets. They claim that pre-installing YouTube on smartphones and TVs sold in the US is a deliberate strategy to eliminate competition and attract customers.

The letter highlights YouTube’s decade-long history of using its market power to bundle services, thereby creating significant barriers for rivals. “YouTube has consistently leveraged its dominance to push connected services on consumers, making it harder for competitors to gain a foothold,” the letter reads, according to Reuters.

This call for increased scrutiny coincides with Alphabet’s recent financial disclosures, which show YouTube’s strong performance. In April 2024, Alphabet announced that YouTube generated over $8 billion in quarterly advertising revenue, an increase of 21% compared to the same period the previous year.

Additionally, data from viewing analytics company Nielsen highlights YouTube’s significant presence in the market and shows that it has been the most-watched streaming service in the US for over a year.

Source: Reuters