The DOJ is about to sue Google for dominating the digital advertising market

The DOJ is about to sue Google for dominating the digital advertising market

The Justice Department is set to sue Alphabet Inc’s Google on Tuesday over its dominance in the digital advertising market, Bloomberg News reported Monday, citing people familiar with the matter.

The lawsuit would be the second federal antitrust complaint filed against Google, alleging antitrust violations in how the tech giant gains or maintains dominance. The Justice Department’s 2020 lawsuit against Google focuses on its search monopoly and is expected to go to trial in September.

The Justice Department did not immediately respond to a request for comment from Reuters, while Google declined to comment on the report.

The lawsuit is expected to target Google’s advertising business, which is responsible for around 80% of its revenue. In addition to its well-known search, which is free, Google generates revenue through its nested advertising technology businesses, which connect advertisers to newspapers, websites and other businesses seeking to host them.

Advertisers and website publishers have complained that Google has not been transparent about where advertising dollars go, particularly how much goes to publishers and how much to Google.

The tech giant made a series of purchases, including DoubleClick in 2008 and AdMob in 2009, to make it a dominant player in online advertising.

Google previously argued that the ad tech ecosystem competes with Facebook, AT&T, Comcast and others.

While Google remains the market leader by far, its share of U.S. digital ad revenue has eroded from 36.7% in 2016 to 28.8% last year, according to Insider Intelligence.

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