DOJ files second antitrust suit against Google, seeks to break up its ad business
Last edited Tue Jan 24, 2023, 04:31 PM - Edit history (1)
Source: CNBC
The U.S. Justice Department on Tuesday filed its second antitrust lawsuit against Google in just over two years. It’s the latest sign the U.S. government is not backing down from cases against tech companies even in light of a mixed record in court on antitrust suits. Google shares were down 1.3% on Tuesday afternoon.
This lawsuit, which is focused on Google’s online advertising business and seeks to make Google divest parts of the business, is the first against the company filed under the Biden administration. The department’s earlier lawsuit, filed in October 2020 under the Trump administration, accused Google of using its alleged monopoly power to cut off competition for internet search through exclusionary agreements. That case is expected to go to trial in September.
Google’s advertising business generated $54.5 billion in the quarter ended Sept. 30 from Search, YouTube, Google Network ads and other advertising. Google also faces three other antitrust lawsuits from large groups of state attorneys general, including one focused on its advertising business led by Texas Attorney General Ken Paxton.
The states of California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee and Virginia joined the DOJ in the latest lawsuit. Google’s advertising business has drawn critics because the platform operates on multiple sides of the market — buying, selling and an ad exchange — giving it unique insight into the process and potential leverage. The company has long denied it dominates the online advertising market, pointing to the market share of competitors including Meta’s Facebook.
Read more: https://www.cnbc.com/2023/01/24/doj-files-second-antitrust-lawsuit-against-google.html
True happening - CNBC threw this story's breaking banner out to their app and then quickly followed up with their Pence classified documents story (that all the other media had blasted out earlier).
Article updated.
Original article and headline -
The U.S. Justice Department on Tuesday filed its second antitrust lawsuit against Google in just over two years. It’s the latest sign that the U.S. government is not backing down from cases against tech firms even in light of a mixed record in court on antitrust suits.
This lawsuit, focused on Google’s online advertising business and seeks to make Google divest parts of the business, is the first against the company filed under the Biden administration. The Department’s earlier lawsuit, filed in October 2020 under the Trump administration, accused Google of using its alleged monopoly power to cut off competition for internet search through exclusionary agreements. That case is expected to go to trial in September.
Google also faces three other antitrust lawsuits from large groups of state attorneys general, including one focused on its advertising business led by Texas Attorney General Ken Paxton. The states of California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee and Virginia joined DOJ in the lawsuit.
Google’s advertising business has drawn critics because the platform operates on multiple sides of the market — buying, selling and an ad exchange — giving it unique insight into the process and potential leverage. The company has long denied that it dominates the online advertising market, pointing to the market share of competitors including Meta’s Facebook.
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The way Google has been operating for the last 20+ years has made it almost impossible for any competitors to get a foothold.
This is probably why Google announced the 12,000 layoffs, they knew this was coming. It's big news in Pittsburgh because we have Google tech center that's been hiring graduates from Carnegie Mellon as fast as they can. I don't think it will hurt the company in the long run though.
