Justice Department accuses Google monopolizing ad tech

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On Tuesday, the Department of Justice and eight states sued Google for illegal monopoly in online advertising.

This is the fifth federal antitrust lawsuit against Alphabet-owned Alphabet since 2020 when the DOJ sued the company for what the government calls a monopoly of search.

Google has “corrupted legitimate competition within the adtech industry” by buying out competitors and directing potential customers to its products, the government stated in its complaint.

The suit states that Google uses its digital advertising technology dominion to funnel more transactions to itself ad tech products, where it extracts inflated prices to line its own pockets at cost of publishers and advertisers it purportedly serves.

Advertising accounts for more than 80%. The total $209 Billion in 2021 was the latest available year.

To stop the free market?

The Justice Department claimed that Google had “thwarted meaningful competition in the digital advertising sector, deterred innovation within it, taken supra-competitive profit for itself, and prevented a free market functioning fairly to support advertisers and publishers who make today’s powerful internet possible,.

Tuesday’s suit was filed in the Eastern District of Virginia by California, Colorado and Connecticut. It was also joined by New York, Rhode Island and Tennessee.

Google denies that its advertising practices have hurt competition.

“Today’s DOJ lawsuit attempts to pick winners or losers in highly competitive advertising technology industry. The company stated that the lawsuit largely replicates an unfounded Texas attorney general suit, which was much of which was recently dismissed in federal court.” “DOJ is intensifying its flawed argument, which would slow innovation, increase advertising fees, and make it more difficult for thousands of small business owners and publishers to grow,” the company said in a statement.

Antitrust advocates supported the government‘s latest lawsuit against Google.

Barry Lynn, the executive director of Open Markets Institute, stated in a statement that “Today’s lawsuit brought by the Department of Justice against Google over monopolization of advertising will live in indelible in American history.”

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Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

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