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DOJ Hits Google with Antitrust Suit Over Alleged Monopolization of Digital Ad Market

DOJ Hits Google with Antitrust Suit Over Alleged Monopolization of Digital Ad Market

The US Justice Department (DOJ) and eight states filed an antitrust lawsuit against Alphabet Inc.’s Google over alleged illegal monopolization of the digital advertising market, according to multiple media outlets. The case would be the largest corporate breakup in four decades.

“Google abuses its monopoly power to disadvantage website publishers and advertisers who dare to use competing ad tech products in a search for higher quality, or lower cost, matches,” the DOJ wrote in the complaint.

The DOJ has joined Virginia, California, Colorado, Connecticut, New Jersey, New York, Tennessee and Rhode Island in the suit.

The lawsuit is the second against Google, having filed a separate one against the company’s alleged monopoly over internet search traffic in 2020.

The plaintiffs are asking the US District Court for the Eastern District of Virginia to order the divestiture of the Google Ad Manager suite, including its publisher ad server DFP, and its ad exchange AdX.

Google controls more than a quarter of all US digital ads, according to Bloomberg data. Digital advertising accounts for nearly 80% of Google’s revenue, and its dominance in the space has been shrinking in recent years. It accounted for 36.7% of digital advertising in 2016 but had fallen to 28.8% in 2022.

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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