A PYMNTS Company

Google Fights Back Against US Antitrust Lawsuit

By  |  April 28, 2024

Google, represented by its parent company Alphabet, has petitioned a federal court in Virginia to dismiss a lawsuit brought forth by the U.S. Justice Department in January 2023, which alleges that the tech giant engaged in anticompetitive practices within the online advertising sector.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to reports from Reuters, the Justice Department’s lawsuit contends that Google abused its dominant position in the digital advertising realm and calls for the divestiture of Google’s ad manager suite, a critical component of the company’s advertising network, which contributed 12% to its revenue in 2021. Google’s advertising arm represents a substantial portion of its overall income, making up about three-quarters of its total revenue.

    Google responded to these allegations on Friday, saying that the government’s case exceeds the confines of antitrust legislation. The company argued that the purportedly anticompetitive actions highlighted by the Justice Department are lawful business decisions and improvements aimed at benefiting its customers. Reuters reported Google’s stance, quoting the company’s position that the government’s case is “doomed” due to its attack on legitimate business practices.

    The disagreement between Google and the U.S. government sets the stage for a legal battle scheduled to unfold in U.S. District Court in Virginia. Judge Leonie Brinkema has slated the trial for September, retaining the authority to shape the lawsuit’s trajectory before the commencement of proceedings. Both parties retain the option to pursue summary judgment, a procedural move that involves a thorough examination of the case’s factual merits.

    Source: Reuters