Alphabet Inc.’s Google is responding to a U.S. government lawsuit accusing the tech giant of anticompetitive behavior in the online advertising marketplace.
The company filed a motion in a federal court in Virginia, urging the court to reject the lawsuit filed by the Justice Department in January 2023.
Key Arguments by Google:
Google argues that the lawsuit exceeds the boundaries of antitrust law and does not regulate the conduct in question.
The company contends that the government’s case is flawed because it targets lawful business decisions and product improvements that benefit Google’s customers.
Google asserts that the lawsuit is “doomed” as it challenges actions within the company’s rights to conduct business and enhance its offerings.
Government’s Allegations:
The Justice Department’s lawsuit accuses Google of abusing its power in the digital advertising business and calls for the divestiture of its ad manager suite.
It alleges that Google used anticompetitive tactics to eliminate or reduce threats to its advertising technology dominance.
Google’s advertising business accounts for a significant portion of its revenue, about three-quarters of its total earnings.
Legal Proceedings and Future Trials:
U.S. District Judge Leonie Brinkema has scheduled a trial for September, where both sides will present their arguments.
The judge can narrow the lawsuit’s scope or dismiss it entirely before the trial.
Google also faces a separate trial in March 2025 in Texas federal court. Texas and other states accuse Google of abusing its dominance in digital advertising.