Alphabet Inc’s Google is actively contesting a U.S. government lawsuit accusing the tech giant of engaging in anticompetitive behavior within the online advertising market.
The lawsuit, filed in January 2023 by the Justice Department, alleges that Google abused its dominance in digital advertising and advocates for the divestiture of its ad manager suite.
Google’s online advertising network, which encompasses ad manager, contributed significantly to the company’s revenue in 2021, amounting to 12% of its total earnings.
This network not only fuels Google’s advertising revenue but also plays a significant role in bolstering its overall sales, intertwined with its search engine and cloud services.
In response to the government’s allegations, Google contends that the lawsuit oversteps the boundaries of antitrust laws.
The company argues that the practices under scrutiny are lawful business decisions and improvements benefiting its customers rather than anti-competitive maneuvers.
The Justice Department’s original complaint accuses Google of utilizing anticompetitive tactics to maintain its dominance over digital advertising technologies.
Approximately three-quarters of Google’s revenue stems from its advertising business, further highlighting the significance of this sector to the company’s financial health.
U.S. District Judge Leonie Brinkema has scheduled a trial for September, where the case will be examined. Both parties have the opportunity to seek summary judgment, enabling a comprehensive review of the case’s merits before proceeding to trial.
The judge retains the authority to refine or dismiss the lawsuit ahead of trial, offering avenues for potential legal resolution.
Google is facing another legal challenge in Texas federal court, slated for March 2025, where it stands accused by Texas and other states of leveraging its dominance in digital advertising unlawfully.
