Alphabet Inc.’s Google, took action on Friday by urging a federal court in Virginia to dismiss a U.S. government lawsuit alleging anticompetitive behavior in the online advertising sector.
The lawsuit, initiated by the Justice Department in January 2023, asserts that Google, as a dominant force in digital advertising, has engaged in practices detrimental to fair competition. Among the claims is a call for the divestiture of its ad manager suite.
In 2021, Google’s online advertising network, inclusive of its ad manager, contributed 12% to the company’s revenue, playing a pivotal role in its overall sales strategy, which encompasses search engine and cloud services.
Google countered on Friday, asserting that the DOJ’s allegations exceed the boundaries set by antitrust legislation, arguing that its conduct is not within the realm of regulation by antitrust laws. Furthermore, the company contended that the lawsuit is destined to fail, as it impugns business decisions and product enhancements beneficial to Google’s clientele.
The Justice Department chose not to offer comment on Google’s rebuttal.
In its initial complaint filed in 2023, the government accused Google of employing anticompetitive tactics to maintain its dominance over digital advertising technologies.
Google’s advertising arm accounts for approximately three quarters of its total revenue.
U.S. District Judge Leonie Brinkema in the Virginia federal court has slated the trial for September, retaining the authority to narrow the lawsuit’s scope or dismiss it outright prior to trial. Both parties retain the option to seek summary judgment, a procedural step involving a factual review of the case’s merits.
Separately, Google is gearing up for a trial in March 2025 in a Texas federal court, where it faces allegations of digital ad dominance abuse lodged by Texas and other states.
