Google prepares to face lawsuit from US Department of Justice over digital ad market dominance: Report

Bloomberg News reported on Monday, citing people familiar with the matter, that the US Justice Department was poised to sue Alphabet’s Google as soon as Tuesday over its dominance of the advertising market. digital.

The lawsuit will be the second federal antitrust complaint against Google, alleging violations of antitrust laws in how the tech giant gains or maintains its dominance. The Justice Department’s case against Google in 2020 focuses on its monopoly in the search space and is expected to go to trial in September.

The Justice Department did not immediately respond to Reuters’ request for comment, while Google declined to comment on the report.

The lawsuit is expected to target Google’s advertising business, which is responsible for about 80% of its revenue. In addition to its popular free search engine, Google earns revenue through interconnected ad-tech businesses that connect advertisers with newspapers, websites, and other companies looking for information. how to store them.

Website advertisers and publishers have complained that Google has not been transparent about where the ad dollars go, specifically how much goes to publishers and how much goes to Google.

The tech giant made a series of purchases, including DoubleClick in 2008 and AdMob in 2009, to help it become a dominant player in online advertising.

Google has previously argued that the ad-tech ecosystem competes with FacebookAT&T, Comcast and others.

While Google has remained the market leader for a long time, its share of US digital ad revenue has eroded, falling from 36.7% in 2016 to 28.8 % last year, according to Insider Intelligence.

© Thomson Reuters 2023

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