Google responds to US government's antitrust lawsuit in Virginia

Google fights lawsuit: Alphabet Inc's Google has filed a motion with a federal court in Virginia, urging the dismissal of a lawsuit brought by the US government alleging anticompetitive practices in the online advertising sector. The lawsuit, filed by the Justice Department in January 2023, accuses Google of leveraging its dominance in the digital advertising industry and advocates for the divestiture of its ad manager suite.

Google's online advertising network, which includes ad manager, contributed 12 per cent of the company's revenue in 2021 and is integral to its overall sales, including its search engine and cloud services.

Google's legal defence

In its defence, Google argued that the Justice Department's case extends beyond the scope of antitrust law and fails to regulate the specific conduct in question. The company contends that the allegations target legitimate business decisions and improvements aimed at benefiting its customers.

The Justice Department has chosen not to comment on Google's response.

Govt alleges anticompetitive tactics

The government's original complaint alleges that Google employed anticompetitive tactics to maintain its dominance over digital advertising technologies.

US District Judge Leonie Brinkema in the Virginia federal court has scheduled a trial for September to address the Justice Department's case. The judge retains the authority to narrow the lawsuit's scope or dismiss it entirely before the trial. Additionally, both parties have the option to seek summary judgement based on the factual merits of the case.

In addition to the lawsuit in Virginia, Google is facing another trial in March 2025 in Texas federal court over similar allegations of abusing its dominance in digital advertising.

(With Reuters Inputs)