DOJ and eight states sue Google over advertising technology

The U.S. Justice Department and eight states sued Google on 24 January, alleging it used acquisitions and restrictions on rival tools to dominate the technology behind website advertising.

Photo: Anthony Quintano, “Google at the 2012 Democratic National Convention North Carolina”. CC BY 2.0. Resized and cropped.

Filed in federal court in Virginia, the case targets tools publishers use to sell advertising, tools advertisers use to buy it, and the exchange connecting them. The department alleges Google weakened competition, raised advertising costs and reduced publishers’ revenue.

The government seeks relief to restore competition and triple damages for federal agencies it says overpaid for display ads. These are allegations and requested remedies, not a court ruling. The case is separate from the department’s 2020 lawsuit over search and search advertising.

Google disputed the case. In a same-day response, global ads vice president Dan Taylor said the industry is competitive and customers can use rival products alongside Google’s tools.

Taylor said regulators had reviewed and permitted its DoubleClick and AdMeld acquisitions. He argued that unwinding those investments would hurt publishers and advertisers, and said the lawsuit could raise fees and slow innovation.

Google pointed to competing advertising businesses, including Microsoft and Amazon, and said it would contest the government’s challenge.