Today, the U.S. Justice Department filed a federal suit against Google over its abuse of its dominance in online advertising.
for violating antitrust law and requested that the company “restore competition within search and search advertising markets.”
Eight states joined the DOJ today: Virginia, California and Colorado; Connecticut, New Jersey New York, Rhode Island, Virginia, Tennessee, Colorado, Colorado and Connecticut.
that “Competition is broken in the advertising tech space for reasons that weren’t accidental or inevitable”.
Google is the industry giant that has corrupted the legitimate competition in the advertising tech sector by engaging in an organized campaign to take control of the broad range of high-tech tools publishers and advertisers use to support digital advertising.
Google has used illegal, anticompetitive and exclusionary methods to remove or reduce any threat to digital advertising technology’s dominance.
Justice Department sues Google over Monopolizing Digital Advertising Technologies
Through Serial Acquisitions and Anticompetitive Auction Manipulation, Google Subverted Competition in Internet Advertising Technologies
Justice Department (@TheJusticeDept).
According to the U.S. government, Google allegedly used the acquisitions of companies within the advertising market to eliminate competitors. It also forced publishers and advertisers to use its services by claiming that it has control over the ads tech services.
Google has now taken control of the technology used by major publishers to sell advertising space. This includes the tools that advertisers use to purchase the space and the largest ad exchange, which is designed to help match publishers and advertisers when the ad spaces are sold.
Today’s filing states that Google uses its monopoly power in order to degrade website publishers and advertisers who use other adtech products to search for better quality or cheaper matches.
Google uses its digital advertising technology dominance to channel more sales to its own products, where it collects high fees at the expense publishers and advertisers it purports to serve.”
A spokesperson for Google told BleepingComputer, “The lawsuit is not founded” and that DOJ’s “flawed argument would hamper innovation and growth.
Today’s DOJ lawsuit aims to determine winners and losers within the highly competitive sector of advertising technology. This lawsuit is essentially the same as an filed by Texas Attorney General. Much of it was recently in federal court,” BleepingComputer was informed.
The DOJ will double down on its flawed argument, which would slow innovation and increase advertising fees. It also makes it more difficult for small publishers and businesses to grow.
Advertising Monopoly: Court ordered to be broken
In an effort to end Google’s market dominance, the court asked for “structural relief” and ordered the Google advertising division to be dismantled.
The lawsuit requests that the court order the “destruction of at least the Google Ad Manager Suite, which includes both Google’s publisher advertising server, DFP, as well as Google’s Ad Exchange, AdX. Along with any other structural relief necessary to remedy any anticompetitive injury.”
Google isn’t the only one to be accused of abusing its dominance in the online advertising market.
In July 2018, Google received a EUR4.34 billion penalty for using its Android OS control to enhance its dominance in the mobile advertising space.
It was penalized by Google for using its market dominance to modify search results. In 2019, it received $1.7 BILLION practices. Two years later in June 2021, another EUR220 MILLION .
Updated with a Google statement.