US Department of Justice Files Another Antitrust Lawsuit Against Google Targeting Digital Advertising

[Asia Economy New York=Special Correspondent Joselgina] On the 24th (local time), the U.S. Department of Justice filed another antitrust lawsuit against Google. It claims that Google is harming fair competition by illegally abusing its dominance in the digital advertising market.

Merrick Garland, U.S. Attorney General
[Photo by AP Yonhap News]

According to CNN and others, the Department of Justice announced on the same day that it had sued Google for violating antitrust laws. This is the second antitrust lawsuit filed by the U.S. federal government against Google.

In the complaint submitted to the U.S. District Court for the Eastern District of Virginia in Alexandria, the Department of Justice argued, "Google sought to maintain its dominance in digital advertising technology in an anti-competitive and illegal manner." It also pointed out that Google absorbed competitors through anti-competitive mergers and forced publishers and advertisers to use its digital advertising technology.

Merrick Garland, the Attorney General, pointed out at a press conference held that Google's anti-competitive behavior over the past 15 years has reduced advertising revenue for websites and publishers while increasing advertising costs for marketers. CNN reported that even the U.S. government has become an affected advertiser, spending more than $100 million on digital advertising. The complaint included remarks from Google executives comparing Google's dominance in the digital advertising market to "Goldman Sachs and Citibank owning the New York Stock Exchange (NYSE)."

On the same day, the Department of Justice requested the court to remove Google's advertising management platforms, including its online ad exchange 'AdX,' from the market. Eight states including California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee, and Virginia also joined the lawsuit.

[Image source=EPA Yonhap News]

CNN evaluated this lawsuit as a direct attack on Google's advertising business. According to the annual report, Google's advertising revenue in 2021 was $209 billion, accounting for about 80% of its total revenue. Google responded in a statement, calling it "an attempt to pick winners and losers in the highly competitive ad tech field" and denied the claim that "(our business) raises advertising costs." In response, Attorney General Garland said, "We do not pick winners or losers. We pick those who violate antitrust laws. Those we sue are such people."

Previously, in 2020, the Department of Justice also filed an antitrust lawsuit related to Google's monopoly in the search business. The related trial proceedings will begin in September.

Meanwhile, on the New York Stock Exchange, Alphabet's stock price was trading more than 2% lower than the previous close in the afternoon of the same day.