The Department of Justice filed an antitrust lawsuit against Google on Tuesday, the second such suit in the last two years.
The new suit focuses on the search giant’s online advertising tech development and signals the Biden administration’s intent on pursuing further antitrust scrutiny of Big Tech. The DOJ filed the suit in partnership with California, New York, Colorado, and Virginia in federal court in Virginia. It could lead to a breakup of Google’s advertising business if successful.
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“The harm is clear: website creators earn less, and advertisers pay more, than they would in a market where unfettered competitive pressure could discipline prices and lead to more innovative ad tech tools that would ultimately result in higher quality and lower cost transactions for market participants,” the complaint argues. If successful, the lawsuit could force Google to share its collection of ad technology tools with competitors and diminish its ability to maintain its advantage via more advanced algorithms and software.
The suit is the fifth major antitrust lawsuit filed against Google in the last two years. The DOJ filed a suit in 2020 alleging that the search engine giant engaged in “anticompetitive and exclusionary practices” in search and advertising practices. The company also faces three antitrust lawsuits from groups of state attorneys general, including one organized by Texas Attorney General Ken Paxton (R). While the suit will increase legal pressure on Google, it will likely take years to be resolved.
Google is considered one of the dominant players in the online advertising market, and its advertising business generated almost $150 billion in 2020.
Tech lobbying groups immediately slammed the decision, describing it as a waste of time. “This is another case from the Biden DOJ and FTC of an antitrust case that lacks the facts and the law,” said NetChoice General Counsel Carl Szabo, noting that Google’s market share is at a historic low.
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“As the tech sector and advertising industry shed jobs, the Biden administration should be looking for ways to support these sectors rather than undermine what’s left,” added Chamber of Progress CEO Adam Kovacevich.
The DOJ sued Google in 2020 for allegedly violating antitrust laws through its search and advertising practices. The scrutiny has increased recently to the point that Google has considered reorganizing its internal structure to separate its ad business from other operations. However, the DOJ does not appear fazed by this, according to statements from the staff.
