Justice Dept. sues Google over digital advertising dominance

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The suit says Google makes it difficult for advertisers to use competitors’ products, among other allegations.

An internet services trade group that includes Google as a member described the lawsuit and its “radical structural remedies” as unjustified.

As with many highly complex technical markets, it has taken time for federal and state regulators and policymakers to catch up with and understand the online ad market. Srinivasan noted that it took a decade before they woke up to the perils of high-speed trading in financial markets and began adopting measures to discourage it.

But that’s not the lawsuit’s concern. It is focused on the technical market mechanisms that Google controls, including the ad server it developed building on the 2008 purchase of market-dominating DoubleClick. DOJ says Google has a more than 90% share of the business that serves ads to websites and controls about 80% of the “buy-side” Google Ads network where advertisers compete to place ads.

 

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