According to reports, the US Justice Department plans to file a lawsuit against Alphabet’s Google as soon as Tuesday over the company’s monopoly on the digital advertising sector.
According to the people, who asked not to be identified because the conversation was private, this case will likely be filed in federal court before the end of the week.
Upon being contacted for comment, the Justice Department didn’t respond right away. Google opted out of commenting.
With control over the majority of the technology used to buy, sell, and serve online advertising, the company is the dominant player in the $279 billion US digital ad market. This lawsuit will be the Justice Department’s second monopoly case against the company.
Additionally, it would be the fifth significant US case criticizing the firm’s corporate conduct.
Three lawsuits have been brought against Google by state attorneys general on the grounds that it is in breach of antitrust laws because it controls the markets for online search, advertising technology, and mobile apps on the Android platform.
According to forecasts from the research firm eMarketer for 2023, the Mountain View, California-based corporation will hold the top spot in the $627 billion worldwide digital ad industry, with the US accounting for the largest share.
US digital ad income from Alphabet’s advertising business is projected to total $74 billion in 2023.
Google offers publishers and advertisers the ability to purchase and sell ads, as well as a trading exchange where deals are made in split-second auctions.
The firm has mentioned other significant companies in the ad tech business, such as Amazon, Meta Platforms, and Microsoft, as competitors in court papers and congressional testimony.
Back during the Trump administration, the agency began to investigate Google’s dominance of the ad tech industry.
The DOJ under former Attorney General William Barr sued Google over its search business, arguing that the corporation had utilized exclusive distribution agreements with wireless carriers and phone manufacturers to exclude competition. A trial in the matter is however scheduled for September.
