The Justice Department asked the court to compel Google to divest its Google Ad manager suite, including its ad exchange AdX
Google said the lawsuit 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.”
Eight states joined the department in the lawsuit filed on Tuesday, including Google’s home state of California.The lawsuit tackles a critical business at Google that is responsible for 80 per cent of its revenue and represents the latest swipe at Big Tech’s market power by the administration of U.S. President Joe Biden, a Democrat. The 2020 lawsuit was brought during the term of Biden’s predecessor Donald Trump, a Republican.
While Google remains the market leader by a long shot, its share of the U.S. digital ad revenue has been eroding, falling to 28.8 per cent last year from 36.7 per cent in 2016, according to Insider Intelligence. The lawsuit lays out a number of Google’s attempts to dominate the advertising market, with the government arguing that the company has the “tech tools to quash the threat.” The complaint discussed header bidding, which was a way that companies could bypass Google to bid on ad space on websites.
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