Headline RoundupJanuary 25th, 2023

DOJ, 9 States File Lawsuit Accusing Google of Monopolistic Practices

AllSides Summary

The Department of Justice and eight states filed a lawsuit against Google on Tuesday, accusing the tech giant of monopolistic practices in its digital advertising business.

For Context: Google’s digital advertising exchange accounted for 29% of the digital ad market in 2022, according to the Associated Press. The cut Google takes for managing ad exchanges, which AP lists as “30% to 50%,” accounts for around 80% of the company’s annual revenue, with ad sales expected to generate $73.8 billion this year for Google, according to the New York Post. 

Key Quotes: Attorney General Merrick Garland said, “monopolies threaten the free and fair markets upon which our economy is based. They stifle innovation, they hurt producers and workers, and they increase costs for consumers.” A statement from the DOJ accused Google of engaging in a “course of anticompetitive and exclusionary conduct that consisted of neutralizing or eliminating ad tech competitors.” Responding to the lawsuit, Google’s VP of Global Ads, Dan Taylor, claimed the case’s argument relied on a “flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.”

How The Media Covered It: News of the suit was covered across the spectrum. The New York Post noted that Google’s share of the digital advertising market has declined in the last year. CNBC noted concerns raised by Google regarding a potential conflict of interest with DOJ antitrust division progressive chief, Jonathan Kanter, who used to work for Google’s competitors.

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