In a recent move in a Virginia federal court, Google has sought to have a lawsuit by the Department of Justice (DOJ) dismissed. The lawsuit, which was filed in January 2023, accuses Google of monopolising the digital advertising technology sector through what it describes as “anticompetitive and exclusionary conduct.”
Google's legal team filed for summary judgement on Friday, aiming to prevent the case from going to trial in September. They argue that the DOJ has not adequately demonstrated that Google controls at least 70% of the market—a commonly referenced threshold for defining a monopoly. Furthermore, Google contends that the DOJ has crafted markets specifically for the case, effectively sidelining significant competitors, including various social media platforms.
At the heart of the DOJ's lawsuit is the claim that Google has engaged in practices that stifle competition and maintain its dominance in digital advertising technologies. According to a DOJ press release from last year, Google manages to capture over 30% of the advertising revenue that passes through its products. This level of control, the DOJ argues, is detrimental to a fair and competitive market.
Attorney General Merrick B. Garland emphasised at the time of the lawsuit's announcement that Google's conduct included “anticompetitive, exclusionary, and unlawful actions” aimed at either eliminating or significantly reducing any competitive threats to its dominance.
Google, however, maintains that the DOJ's claims exceed the boundaries of antitrust laws. According to reports from Bloomberg and Reuters, Google has dismissed the idea that it holds a monopoly, citing the intense competition it faces from other tech giants and social media companies. The tech company's defence hinges on the argument that the market definitions applied by the DOJ have been tailored specifically to target Google, thereby ignoring the broader industry dynamics.
As the case progresses, the outcome could have significant implications not only for Google but for the digital advertising industry as a whole. If Google were to lose, it could lead to major changes in how digital ad technologies are regulated and operated. Conversely, a win for Google could affirm the status quo, where large tech companies hold considerable sway over large segments of the digital economy.
