The U.S. Department of Justice and eight states have filed a lawsuit against Google, Inc., a California-based internet giant, alleging antitrust violations related to the company’s monopolization of the online advertising industry. By claiming that Google had “corrupted real competition in the ad tech business,” the federal antitrust action alleged that the company had abused its dominant market position.
“Google has used anti-competitive, exclusionary and unlawful means to eliminate or severely mitigate any threat to its dominance over digital advertising technologies,” the lawsuit added.
The United States Department of Justice (DOJ) and eight individual states (Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee, and Virginia) have joined forces to pursue this case. The issue hinges on Google’s monopoly on ad tech, which is essential for any business looking to advertise online.
Prosecutors have said that Google “now dominates” the main industry, resulting in lower profits for website owners, higher advertising costs and a slowdown in innovation.
According to US Deputy Attorney General Lisa Monaco, “Google has wreaked havoc on online publishers and advertisers and American consumers in its pursuit of excessive profits.” Allegations that Google abused its dominant position in the Android App Store, Internet search and advertising technologies have led to a slew of state suits before federal action.
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Google has vigorously refuted claims that it is a monopoly, citing Amazon, Facebook owner Meta, and Microsoft as Internet advertising competitors.