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Google Faces Another U.S. Antitrust Trial

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Alphabet Google faces trial in a second antitrust case next week where the U.S. Department of Justice will challenge how the search giant monetizes advertising through a system that prosecutors say harms news publishers.

The case is part of the Biden administration’s effort to rein in Big Tech through antitrust law and follows a major win for the Justice Department in a separate lawsuit on Aug. 5 when a judge found that Google illegally monopolized online search.

While that case focused on Google’s ubiquitous search engine, the trial beginning in Alexandria, Virginia, on Monday will home in on less conspicuous Google technology that connects website publishers and advertisers.

Those advertising tools contributed to the more than 75 per cent of Google’s $307.4 billion in revenue last year that came from advertising.

“Google is far and away the largest seller of advertising on earth. They touch every part of the industry, if not directly, then indirectly. Everyone has an interest in Google one way or another,” said Brian Wieser, an advertising consultant and financial analyst. The Justice Department and a coalition of states will seek to show Google broke U.S. antitrust law in its digital advertising businesses. A victory for the states and Justice Department would set the stage for them to ask U.S. District Judge Leonie Brinkema to order a breakup of the company.

The antitrust regulators accuse Google of dominating the markets for the technology behind website ads by tying its tools for publishers and advertisers together, staking out a “privileged position as the middleman.”

Google has denied the claims, saying it is not required to share technological advantages with rivals and that its products are interoperable with those offered by competitors.

The Justice Department alleges that Google controls 91 per cent of the market for ad servers, where publishers offer ad space, more than 85 per cent of the market for ad networks, which advertisers use to place ads, and over half of the market for ad exchanges.

Google says its share of those markets is 30 per cent or less when including advertising on social media, streaming TV and apps, and says the Justice Department’s narrow focus on website ads obscures the fierce competition it faces as those categories grow.

Google competitors on the advertiser side, such as Trade Desk and Comcast, and publisher side, such as PubMatic, are on the list of potential witnesses.

The case will also highlight how advertising technology has affected news organizations. One-third of newspapers in the U.S. have been closed or sold since 2005, according to a Northwestern University study published last November.

“Journalism is under threat in large part due to consolidation in the advertising market,” Justice Department antitrust chief Jonathan Kanter said at an event held in June by the Open Markets Institute, an anti-monopoly advocacy group.

Current or former executives from News Corp, the Daily Mail and Gannett, which has also sued Google, may testify at trial.

Google has focused on small businesses and publishers, some of whom it plans to call as witnesses at trial. A breakup would “slow innovation, raise advertising fees, and make it harder” for small companies to grow, Google has said.

The way Google viewed its ad tech will be a key focus at trial, with potential testimony from more than two dozen current or former employees and executives, including YouTube Chief Executive Neal Mohan, a former Google advertising executive.

 

 

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Telecom Operators Reject NLC’s Demand for Tariff Reduction, Justify 50% Hike

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By Emmanuel Ogbodo

Nigeria’s Mobile Network Operators (MNOs) have rejected calls from the Nigeria Labour Congress (NLC) to negotiate a reduction in the recent 50% tariff increase, insisting the hike is necessary for the industry’s sustainability amid rising operational costs.

The NLC, opposing the adjustment, has demanded a rollback to 5% and threatened a nationwide protest on Tuesday, February 4, if its demands are not met.

The union described the increase as “insensitive and unjustifiable,” warning it would further strain Nigerian consumers.

At a weekend forum in Lagos, representatives from the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and major telecom firms, including MTN Nigeria, Airtel Nigeria, and 9mobile, defended the hike.

ALTON Chairman Gbenga Adebayo likened the increase to a “lifeline” for the industry, arguing that anything lower would cripple operations.

MTN Nigeria’s Chief Corporate Services & Sustainability Officer, Tobechukwu Okigbo, clarified that operators do not engage directly with the NLC, as ALTON manages industry-wide negotiations.

Airtel Nigeria’s Director of Corporate Communications and CSR, Femi Adeniran, added that discussions with labour unions fall under the purview of government agencies and ALTON.

The Nigerian Communications Commission (NCC), which approved the tariff adjustment on January 20, 2025, defended the move, citing inflation, foreign exchange volatility, and rising energy costs.

The commission emphasized that the decision aligns with its mandate under the Nigerian Communications Act, 2003, to ensure telecom sector viability.

Despite these justifications, the NLC remains firm in its opposition. Union President Joe Ajaero reiterated the demand for a significant reduction, warning of nationwide protests if the hike is not reversed.

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Dangote Refinery Reduces Petrol Price to N890 Per Litre

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By Alexis Uchendu

Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N950 to N890 per litre, effective February 1, 2025.

The company attributed the price adjustment to a favorable shift in global energy markets and a decline in international crude oil prices.

This follows a previous price hike on January 19, driven by rising crude costs.

Dangote Refinery expressed optimism that the price cut will lower fuel costs nationwide, ease the cost of living, and positively impact key economic sectors.

The company also urged fuel marketers to reflect the reduction at retail stations, ensuring consumers benefit from the adjustment as part of broader economic recovery efforts led by President Bola Ahmed Tinubu.

Reaffirming its commitment to Nigeria’s self-sufficiency in refined petroleum products, the refinery pledged to strengthen the country’s position as a leading oil export hub in Africa.

 

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Naira Gains Against Dollar Amid CBN Reforms

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By Adenike Lawal

The Naira appreciated by 0.78% at the official market on Wednesday, trading at N1,510.72 per dollar, an N11.96 gain from the previous day’s rate of N1,522.68, according to FMDQ Securities Exchange data.

Since December 2024, the Naira has remained relatively stable, largely due to ongoing reforms by the Central Bank of Nigeria (CBN).

On Tuesday, the apex bank introduced additional measures, including a waiver on the 2025 annual license renewal fee for Bureau De Change (BDC), operators and the launch of the Nigeria Foreign Exchange (FX), Code to enhance transparency in forex transactions.

Dr. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), praised the CBN’s initiatives, urging continued support for policies that strengthen the local currency.

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