US Justice Dept sues Google for dominating online advertising market

The US Justice Department and eight states have sued Google and accused the company of harming competition with its dominance in the online advertising market, reported CNN. On Tuesday, the US Justice Department called for breaking up the Google monopoly. The Attorneys General of California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee, and Virginia, has filed a civil antitrust suit against Google. The move is being considered the Biden administration’s first blockbuster antitrust case against a Big Tech company.

Taking to Twitter, the Justice Department wrote, "Justice Department Sues Google for Monopolizing Digital Advertising Technologies. Through Serial Acquisitions and Anticompetitive Auction Manipulation, Google Subverted Competition in Internet Advertising Technologies." They also attached the press release related to the case. 

Justice Department Sues Google for Monopolizing Digital Advertising Technologies

Through Serial Acquisitions and Anticompetitive Auction Manipulation, Google Subverted Competition in Internet Advertising Technologieshttps://t.co/0bwDlmWXaP

— Justice Department (@TheJusticeDept) January 24, 2023

Why Google was sued by the US?

The case has been filed at the U.S. District Court for the Eastern District of Virginia. The Justice Department and attorneys from eight states have complained that google monopolizes key digital advertising technologies, collectively referred to as the “ad tech stack,” that website publishers depend on to sell ads, read the statement released on January 24. This makes advertisers depend on them to buy ads and reach potential customers. Further, they explained the process where the ad tech tools used by website publishers generate advertising revenue that supports the creation and maintenance of a vibrant open web.

This provides the public with unprecedented access to ideas, artistic expression, information, goods, and services. The attorneys claimed that through this monopolization lawsuit, US justice seeks "to restore competition in these important markets and obtain equitable and monetary relief on behalf of the American public." 

Google's anticompetitive behavior has resulted in lower ad revenues for websites and publishers, as well as higher advertising costs for marketers for 15 years, said  Attorney General Merrick Garland on Tuesday, reported CNN. As per the complaint, the US government has been harmed too that named the US Army as one of the multiple government advertisers using Google’s tools. Since 2019, the US government has spent $100 million buying online ads, the complaint said. Furthermore, another associate attorney named General Vanita Gupta said,  “The Department’s landmark action against Google underscores our commitment to fighting the abuse of market power.”