U.S. targets Google's online ad business monopoly in latest Big Tech lawsuit

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U.S. targets Google's online ad business monopoly in latest Big Tech lawsuit
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The U.S. Justice Department sued Alphabet's Google on Tuesday, accusing the company of abusing its dominance of the digital advertising business and saying it should be forced to sell its ad manager suite, in the government's latest jab at thwarting Big Tech's market power.

Tuesday's lawsuit by the administration of President Joe Biden, a Democrat, follows a 2020 antitrust lawsuit brought against Google during the term of Donald Trump, a Republican.

Colorado Attorney General Phil Weiser said that Google's dominance had led to higher fees for advertisers and less money for publishers with ad space to offer. "We are taking action by filing this lawsuit to unwind Google’s monopoly and restore competition to the digital advertising business," he said in a statement.In addition to its well-known search, which is free, Google makes revenue through its interlocking ad tech businesses.

Tuesday's lawsuit raises concerns about certain products in the ad tech stack, where publishers and advertisers buy and sell ad space. That business was about $31.7 billion in 2021 or 12.3 percent of Google’s total revenue. About 70% of that revenue goes to publishers. The lawsuit lays out a number of Google's attempts to dominate the advertising market, with the government arguing that the company has the "tech tools to quash the threat" of competitors.

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