Google Lawsuit
Posted: Wed Jan 25, 2023 3:11 pm
Google Lawsuit
The US Justice Department is suing Google, claiming the company has monopolized the digital advertising market, and is seeking to force Google to divest parts of its business. The complaint (read here), joined by eight states, alleges Google carried out a series of projects to manipulate its advertisers’ spending to reduce competition from rival ad exchanges, among other actions.
Google, for years, has led the US digital advertising market, capturing 34.7% of the market at its peak in 2017, though the company appears to be losing its hold on the space thanks to competition from TikTok and Amazon. Still, Google earned $209B from advertising in 2021 and is expected to see similar results for 2022 in next week's full-year earnings report. Google makes about 80% of its revenue from digital advertising (see overview).
The lawsuit is the second federal antitrust (see 101) challenge against Google. The Justice Department filed a suit in 2020 over Google allegedly stifling competition for internet searches; the case is headed to trial in September.
The US Justice Department is suing Google, claiming the company has monopolized the digital advertising market, and is seeking to force Google to divest parts of its business. The complaint (read here), joined by eight states, alleges Google carried out a series of projects to manipulate its advertisers’ spending to reduce competition from rival ad exchanges, among other actions.
Google, for years, has led the US digital advertising market, capturing 34.7% of the market at its peak in 2017, though the company appears to be losing its hold on the space thanks to competition from TikTok and Amazon. Still, Google earned $209B from advertising in 2021 and is expected to see similar results for 2022 in next week's full-year earnings report. Google makes about 80% of its revenue from digital advertising (see overview).
The lawsuit is the second federal antitrust (see 101) challenge against Google. The Justice Department filed a suit in 2020 over Google allegedly stifling competition for internet searches; the case is headed to trial in September.