UPDATE 2:15 PM 1/24.....The US Justice Department is seeking the breakup of Google’s business brokering digital advertising across much of the internet, a major expansion of the legal challenges the company faces to its business in the U.S. and abroad.
A lawsuit filed Tuesday, the Justice Department’s second against the Alphabet Inc. following one filed in 2020, alleges that Google abuses its role as one of the largest brokers, suppliers and online auctioneers of ads placed on websites and mobile applications. The filing promises a protracted antitrust battle with wide-ranging implications for the digital-advertising industry.
Filed in federal court in Virginia, the case alleges that Google abuses monopoly power in the ad-tech industry, hurting web publishers and advertisers that try to use competing products.
The lawsuit asks the court to unwind Google’s “anticompetitive acquisitions,” such as its 2008 purchase of ad-serving company DoubleClick, and calls for the divestiture of its ad exchange.
Earlier Story....
U-S Justice Department is poised to sue Alphabet Inc.’s Google as soon as Tuesday regarding the search giant’s dominance over the digital advertising market, according to people familiar with the matter.
The case is expected to be filed in federal court before the end of the week, said the people, who asked not to be named discussing a confidential matter.
The Justice Department didn’t immediately respond to a request for comment. Google declined to comment.
The lawsuit will mark the Justice Department’s second monopoly case against the company, which is the No. 1 player in the $278.6 billion US digital-ad market, controlling most of the technology used to buy, sell and serve online advertising.
Bloomberg reports the lawsuit would also be the fifth major case in the US challenging the company’s business practices. State attorneys general have filed three separate suits against Google, alleging it dominates the markets for online search, advertising technology and apps on the Android mobile platform in violation of antitrust laws.
The Mountain View, California-based company is No. 1 in the $626.86 billion global digital ad market, according to 2023 estimates by research firm eMarketer, with the US representing the biggest piece. Alphabet’s ad operations are expected to bring in $73.8 billion in US digital ad revenue in 2023. Google runs an ad-buying service for marketers and an ad-selling one for publishers, as well as a trading exchange where both sides complete transactions in lightning-fast auctions.
Google has argued that the market for online advertising is a crowded and competitive one. In court filings and congressional testimony, the company has noted its rivals include other major players in the ad tech market such as Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp.
The department’s scrutiny of Google’s control of the ad tech market goes back to the Trump administration. The DOJ under then-Attorney General William Barr sued Google over its search business instead, alleging the company used exclusive distribution deals with wireless carriers and phone makers to lock out competition. That case is due to go to trial in September.
The case is expected to be filed in federal court before the end of the week, said the people, who asked not to be named discussing a confidential matter.
The Justice Department didn’t immediately respond to a request for comment. Google declined to comment.
The lawsuit will mark the Justice Department’s second monopoly case against the company, which is the No. 1 player in the $278.6 billion US digital-ad market, controlling most of the technology used to buy, sell and serve online advertising.
Bloomberg reports the lawsuit would also be the fifth major case in the US challenging the company’s business practices. State attorneys general have filed three separate suits against Google, alleging it dominates the markets for online search, advertising technology and apps on the Android mobile platform in violation of antitrust laws.
Google has argued that the market for online advertising is a crowded and competitive one. In court filings and congressional testimony, the company has noted its rivals include other major players in the ad tech market such as Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp.
The department’s scrutiny of Google’s control of the ad tech market goes back to the Trump administration. The DOJ under then-Attorney General William Barr sued Google over its search business instead, alleging the company used exclusive distribution deals with wireless carriers and phone makers to lock out competition. That case is due to go to trial in September.
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