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U.S. Justice Department to launch antitrust lawsuit against Google's digital advertising business, sources say

via:新浪科技     time:2023/1/24 17:01:01     readed:84

Sina Technology, Beijing, January 24 morning news, according to reports, people familiar with the matter revealed that the U.S. Department of Justice plans to launch a lawsuit against Google as early as Tuesday local time because of its dominant position in the digital advertising market.

People familiar with the matter said the case could be filed in U.S. federal court by the weekend. But the U.S. Department of Justice has not yet commented. Google also declined to comment.

This lawsuit will be the second antitrust lawsuit launched by the U.S. Department of Justice against Google. Google currently holds the top spot in the $278.6 billion U.S. digital advertising market, controlling most of the market share.

The lawsuit will also become the fifth major lawsuit launched by the U.S. government against Google's business model. State attorneys general have also launched three other lawsuits against Google, alleging that the company's dominance in search, advertising technology and Android applications violates U.S. antitrust laws.

According to market research firm eMarketer, Google ranks first in the $626.86 billion global digital advertising market, of which the U.S. has the largest share as well. Google parent company Alphabet's advertising business is expected to generate $73.8 billion in U.S. digital advertising revenue in 2023. Google provides ad buying services for marketers and ad selling services for content publishers, and also creates a quick bidding platform for both parties.

Google has said that the online advertising market is very crowded and highly competitive. In documents filed with the court and testimony provided to the U.S. Congress, they said that technology companies including Amazon, Meta and Microsoft are its key competitors.

Back during the Trump administration, the U.S. Department of Justice began a review of Google's dominance in the ad tech market. But the DOJ at the time chose to sue Google's search business, accusing the company of using exclusive distribution agreements with mobile carriers and handset makers to crowd out competitors. The case is set to go to trial in September.

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