Alphabet, which owns Google, has been sued by its investors. They allege that the company has a monopoly in the online advertising market, as a US Department of Justice investigation into the matter has already led to “Significant Loss and Damage”. The claim can be given the status of a collective.
In addition to Alphabet itself, the accused also include Sundar Pichai, CEO of the holding company, Ruth Porat, CFO, and Philipp Schindler, head of brand development – according to the plaintiffs, the company deliberately concealed antitrust violations from shareholders. If the lawsuit is classified as a class action, the plaintiffs will be all of Alphabet’s stocks who filed between February 4, 2020 and January 23, 2023, the day before the U.S. Department of Justice announced the opening of an antitrust investigation into Google bought a lawsuit.
The department believes that Google intentionally monopolized the digital advertising market, absorbed competitors, forced advertisers and publishers to use its tools, distorted the competitive nature of advertising auctions, and manipulated their results. If the court decides on the Justice Department’s lawsuit that the company broke the law, Google will be forced to sell the Ad Manager package and other advertising tools to restore the competitive environment.
The originators of the new lawsuit allege that the company’s management knew the anticompetitive nature of their actions but failed to stop violations in order to generate revenue. Top executives, the plaintiffs claim, had a choice: admit the illegality of their actions and face the consequences, such as a stock market plunge, or make a series of deliberately false statements between 2020 and 2023.
The DOJ’s antitrust lawsuit over the online advertising market is still in its early stages, but a similar 2020 case over monopolizing the web search market is now showing interesting twists: The company was recently accused of willfully destroying evidence – messages in internal chats .
In their lawsuit, investors are seeking damages for property damage related to the actions of the Justice Department, but it seems that proving the fact of such damage will not be easy, the publication is sure The registry. However, after the antitrust case opened in 2020, Alphabet’s shares rallied, and prices rose through most of early 2022. With the filing of the second antitrust lawsuit, there was a certain dent in the share prices, but the share was able to more than make up for the crash at the beginning of February. Another positive factor for the market has been Google’s recent string of announcements of new AI products. And the instability of Alphabet stock in 2022 generally repeated the picture of its competitors, and the actions of the Justice Department were clearly not to blame.