Google search engine displayed on a tablet. Source : Photomix via Pexels
Google has been sued by the US Justice Department following allegations of misconduct surrounding online advertising.
The Justice Department, and eight states, filed an antitrust suit agents the internet giant, describing conduct as negatively impacting advertisers, consumers, and the US Government.
Google is alleged to assert dominance and have done so through eliminated competition by acquiring parent companies.
Attorney-General Merrick Garland said Google’s anti-competitive conduct has manipulated online advertising to their advantage.
“…Google has used anticompetitive, exclusionary, and unlawful conduct to eliminate or severely diminish any threat to its dominance over digital advertising technologies.” Mr Garland said.
“No matter the industry and no matter the company, the Justice Department will vigorously enforce our antitrust laws to protect consumers, safeguard competition, and ensure economic fairness and opportunity for all.
Deputy Attorney-General Lisa O. Monaco said the suit seeks to correct any misconduct engaged in by Google and to seek justice.
“The complaint filed today alleges a pervasive and systemic pattern of misconduct through which Google sought to consolidate market power and stave off free-market competition.” Ms Monaco said.
“In pursuit of outsized profits, Google has caused great harm to online publishers and advertisers and American consumers.
“This lawsuit marks an important milestone in the Department’s efforts to hold big technology companies accountable for violations of the antitrust laws.” She said.
Assistant Attorney-General Jonathan Kanter who is a part of the Justice Department’s Antitrust Division said the goal is to hold Google accountable and to set a precedent for other companies.
“Today’s lawsuit seeks to hold Google to account for its longstanding monopolies in digital advertising technologies that content creators use to sell ads and advertisers use to buy ads on the open internet.” Mr Kanter said.
“Our complaint sets forth detailed allegations explaining how Google engaged in 15 years of sustained conduct that had – and continues to have – the effect of driving out rivals, diminishing competition, inflating advertising costs, reducing revenues for news publishers and content creators, snuffing out innovation, and harming the exchange of information and ideas in the public sphere.” He said.
Google released a statement in response to the lawsuit where they said the DOJ is working on a “flawed argument”.
“Today’s lawsuit from the DOJ attempts to pick winners and losers in the highly competitive advertising technology sector.” A spokesperson for Google said.
“DOJ is doubling down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.” They said.
Google currently controls the digital tool used by most website publishers to sell ads on their sites.
It also controls the most used tool by advertisers to buy ad inventory and it controls the largest advertising exchange.
Google is accused on acquiring competitors for company gain, forcing advertisers and website publishers to adopt Google tools, distorting competition in auctions on the Google ad exchange, and manipulating auctions across various products to limit competition.
