Google is about to face another federal antitrust lawsuit. This time, his dominance of the digital ad market is in the crosshairs
According to people familiar with the matter, the US Department of Justice is poised to sue Alphabet Inc.’s Google as early as Tuesday over the search giant’s dominance of the digital advertising market.
The case is expected to be filed in federal court before the end of the week, said the people, who asked not to be named to discuss a confidential matter.
The Justice Department did not immediately respond to a request for comment. Google declined to comment.
The lawsuit marks the Justice Department’s second monopoly case against the company, which is #1 in the $278.6 billion digital advertising market and controls most of the technology used to buy, sell and deliver online advertising is used.
The lawsuit would also be the fifth major case in the US challenging the company’s business practices. Attorneys general have filed three separate lawsuits against Google alleging that Google is dominating the online search, advertising technology and apps markets on the Android mobile platform in violation of antitrust laws.
Based in Mountain View, California, the company is ranked #1 in the $626.86 billion global digital advertising market by 2023, with the U.S. being the largest chunk, according to estimates by research firm EMarketer. Alphabet’s advertising operations are expected to generate $73.8 billion in US digital advertising revenue in 2023. Google operates an ad-buying service for marketers and an ad-selling service for publishers, as well as a trading exchange where both sides complete transactions at lightning speed. quick auctions.
Google has argued that the online advertising market is crowded and highly competitive. In court filings and congressional testimony, the company has noted that its competitors include other big players in the ad tech market, such as Amazon.com Inc., Meta Platforms Inc., and Microsoft Corp.
The investigation into the department’s control over Google’s control of the ad-tech market dates back to the Trump administration. The DOJ, under then-Attorney General William Barr, instead sued Google over its search business, claiming the company used exclusive distribution deals with wireless carriers and phone manufacturers to eliminate competition. This case is scheduled to go to trial in September.
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