A federal lawsuit alleges the tech giant's anti-competitive actions mean more websites need paywalls.
Its anti-competitive actions had "weakened if not destroyed competition in the ad tech industry", US Attorney General Merrick Garland said.The case attempted to "pick winners and losers" in a competitive industry, the firm said.Google is the market leader, but its slice of total US digital ad income has fallen from 36.7% in 2016 to 28.8% in 2022, according to market research firm Insider Intelligence.
Assistant Attorney General Jonathan Kanter alleged that the firm's actions over 15 years had the effect of "driving out rivals, diminishing competition, inflating advertising costs, reducing website publisher revenues, stymieing innovation and flattening our public marketplace of ideas". "It largely duplicates an unfounded lawsuit by the Texas Attorney General, much of which was recently dismissed by a federal court.
It could lead to the break-up of the firm's advertising business if the courts side with the US government. The Justice Department complaint asks the court to compel Google to divest parts of its ad business.
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