Report: Feds Ready Suit Against Google Ad Business
The federal government is reportedly set to challenge Google’s ad market dominance in court.
A Department of Justice (DOJ) antitrust lawsuit could be filed against the tech giant by the end of this week, Bloomberg News reported Monday (Jan. 23), citing unnamed sources.
The suit, which would be the second DOJ antitrust action against Google, targets a sector of the company’s business that accounts for nearly 80% of its revenue.
It comes amid increasing regulatory pressure on the company and others in the tech sector. PYMNTS has reached out to Google and the DOJ for comment but has not yet received a reply.
As PYMNTS has reported, the department sued Google in 2020, claiming the company violated antitrust law to maintain its top position in the search market. The suit argued that 80% of searches in the U.S. are carried out on channels owned or controlled by Google.
Google, which last month asked the court to dismiss the suit, has called the DOJ’s case “deeply flawed,” saying it relies on “dubious antitrust arguments.” The case is set for trial in September.
Reports of this latest suit emerged last summer, as DOJ lawyers began questioning publishers to learn more about Google’s ad practices, which Google has defended.
“Our advertising technologies help websites and apps fund their content, and enable small businesses to reach customers around the world,” said Google spokesperson Peter Schottenfels. “The enormous competition in online advertising has made online ads more relevant, reduced ad tech fees, and expanded options for publishers and advertisers.”
Google has offered to break up its $209 billion ad tech business in an effort to fend off DOJ court action, PYMNTS wrote last year.
“Google holds a strong position in most of the different parts of the ad-tech business, from the supply side to the demand side — and the marketplace where the orders from both sides are exchanged,” PYMNTS noted.
The company is also fighting an antitrust ruling from the Competition Commission of India (CCI), which last year fined Google and asked it to cease blocking Android phone users in the country from deleting its apps.
Earlier this month, Google told the Indian Supreme Court that the antitrust order will hinder the growth of the Android ecosystem.
“Tremendous advancement in growth of an ecosystem of device manufacturers, app developers and users is at the verge of coming to a halt because of the remedial directions,” the company said in a court filing.