Google faces antitrust lawsuit targeting advertising

The lawsuit is part of the Biden administration’s efforts to tighten regulation of big tech companies. Google lost a separate case in August that accused it of monopolizing the search market.

While the previous lawsuit focused on Google’s search engine, this new lawsuit will delve into the company’s complex advertising system. Google has built a massive advertising empire that accounts for more than 75% of the company’s $307.4 billion in revenue. The system connects website publishers with advertisers, creating a massive money cycle.

The Justice Department alleges that Google abused its dominant position in the ad server market, with a 91% market share and an 85% market share in ad networks and ad exchanges, to eliminate competition and harm smaller businesses.

Google, however, has denied the allegations, arguing that it has not violated antitrust laws and that its products can still interact with those of competitors. The company has maintained that its market share is not as large as the Justice Department alleges, at around 30%, and that competition in the advertising industry remains fierce.

The antitrust case against Google also raises big questions about the future of the news industry. Google’s dominance of the advertising market has forced many newspapers to close or sell. The Justice Department argues that Google’s concentration of power has undermined diversity of news sources and harmed consumers.