In a lawsuit against Google, the US Department of Justice (DOJ) and eight US states claim that the company has excessive control over the internet advertising industry.
According to US Attorney General Merrick Garland, its anti-competitive practices have “weakened, if not killed, competition in the ad tech business.”
Google charged that the DOJ was “doubling down on an argument that is incorrect.”
According to the corporation, the action sought to “select winners and losers” in a cutthroat market.
Google generates the majority of its billion-dollar earnings from online advertising.
Google is the industry leader, however, according to market research company Insider Intelligence, its share of all US digital ad revenue will drop from 36.7% in 2016 to 28.8% in 2022.
Mr. Garland claimed that Google engaged in anti-competitive behavior in three crucial areas:
- It oversees the technology that almost all significant internet publishers use to sell ad space.
- It manages the main instrument that businesses use to purchase advertising space.
- It is in charge of the biggest marketplace that connects publications and advertising.
According to Mr. Garland, the Google program causes “website producers to earn less and marketers to spend more.”
Less publishers may provide content without paywalls, subscriptions, or other types of monetization as a result.
The firm’s conduct over a 15-year period, according to Assistant Attorney General Jonathan Kanter, “drove away rivals, diminished competition, inflate advertising costs, reduce online publisher income, stifle innovation, and flatten our public marketplace of ideas.”