U.S. targets Google’s online ad business monopoly in latest Big Tech lawsuit
WASHINGTON, Jan 24 (Reuters) – The U.S. Justice Department accused Alphabet Inc’s (GOOGL.O) Google on Tuesday of abusing its dominance in digital advertising, threatening to dismantle a key business at the heart of one of Silicon Valley’s most successful internet companies.
The government said Google should be forced to sell its ad manager suite, tackling a business that generated about 12 percent of Google’s revenues in 2021, but also plays a vital role in the search engine and cloud company’s overall sales.
“Google has used anticompetitive, exclusionary, and unlawful means to eliminate or severely diminish any threat to its dominance over digital advertising technologies,” the antitrust complaint said.
Google, whose advertising business is responsible for about 80% of its revenue, said the government was “doubling down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.”