The US Justice Department Planning to Sue Google for Dominating the Digital Ad Market

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The US Department of Justice may soon bring a second antitrust case against Google [NASDAQ: GOOGL]. After a year of investigating whether the internet giant has been exploiting its dominant position to improperly dominate the digital ad industry, the DOJ is preparing to sue the company as early as September, according to Bloomberg. According to reports, the Justice Department’s attorneys have been conducting more interviews to gather more evidence that would support their position. It is anticipated that the new interviews will add to older ones that were performed considerably earlier in the inquiry.

In 2020, the Justice Department initially brought an antitrust action against the business, alleging that it unfairly had a monopoly on search and search-related advertising. In that specific instance, the agency contended that requiring Android phone manufacturers to choose Google as the default search engine inhibits competitors from gaining ground and assures the corporation would make significant sums of money from search-related advertising.

The same year, Google was sued by many states, including Texas, which accused the business of abusing its “monopolistic ability to regulate” ad prices. The company’s advertising methods are being investigated not just in the US but also in other countries: In order to determine if Google restricts competing services’ access to user data for advertising purposes, the European Commission started an investigation last year. According to a June report from Reuters, Google may permit other ad networks to broadcast advertisements on YouTube as a courtesy to the EU.

Google spokesperson Peter Schottenfels defended the company’s ad business in a statement to Bloomberg, even though the DOJ has not yet formally filed its case: “Our ad-tech solutions help websites and applications monetize their content and provide small companies access to a global market. Online advertising has experienced intense competition, which has increased relevance, decreased ad tech costs, and increased possibilities for publishers and advertisers.”

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