As expected, the US Department of Justice and eight states, including New York, California and Virginia, are suing Google (Alphabet’s holding company) for monopolizing the online digital advertising market. informed Bloomberg resource. The lawsuit demands that Google dissolve its advertising arm.
Justice Department antitrust commissioner Jonathan Kanter, who announced the lawsuit at a news conference Tuesday, said the intent of filing in federal court in Virginia is to hold Google accountable for its longstanding monopoly on digital advertising technology. “which content creators use to sell ads and advertisers use to buy ads online.”
Google called the US Department of Justice’s lawsuit “an attempt to pick winners and losers in the highly competitive advertising technology sector.” When specified in the company blog “Largely duplicates a baseless lawsuit brought by the Texas Attorney General, much of which was recently dismissed in federal court.” “The Justice Department is pushing a flawed argument that is slowing innovation, increasing ad fees and stymiing the growth of thousands of small businesses and publishers.” the company stated.
Google also accused the US Department of Justice of mishandling its advertising products, noting that its solutions worked with competing technologies, allowing publishers and advertisers to do so “simply” Choose the right services. “Nobody is obliged to use our advertising technologies – advertisers choose them because they are effective”, said Google.
Google dominates the $278.6 billion US digital advertising market and controls much of the technology used to buy, sell and deliver online advertising. According to the Justice Department, Google’s dominance accounts for at least 30 cents of every dollar advertisers spend on its online advertising tools.
The Justice Department’s lawsuit also seeks damages for allegedly overpricing federal agencies like the US Army that bought online ads. The agency alleges that the US government has spent more than $100 million on online display advertising since 2019, though the lawsuit doesn’t specify how much the company should recover.
According to Bloomberg’s forecast, the lawsuit could last for years.