The US Department of Justice sued Google on Tuesday for its “monopoly” on online advertising. how you report The New York Timesthis blow comes at a time when Alphabet, the parent company, faces other legal claims and mass layoffs.
“Google used anti-competitive, exclusionary, and illegal means to eliminate or seriously diminish any threat to its dominance over digital advertising technologies,” the lawsuit against the California-based tech giant states.
Adding to the Justice Department’s action are lawsuits from eight states, including California and New York, asking the courts to sentence the Californian company for violating competition law.
According to Reuters, the US government claims that Google should be forced to sell its ad management suite, which accounted for 12% of the company’s revenue in 2021.
What does the antitrust complaint against Google say?
According to the AFP agency, as such the lawsuit underlines that Google has “corrupted legitimate competition in the advertising technology sector.”
“The damages are clear: Website publishers earn less and advertisers spend more,” the antitrust complaint states.
For its part, Google told Reuters the government was “doubling down on a misguided argument that would stifle innovation, increase advertising fees and make it harder for thousands of small businesses and publishers to grow.”
Google shares fell 1.9 percent on Tuesday, days after the tech company announced a round of layoffs of 12,000 people.
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