US targets Google break-up over advertising dominance - Mobile World Live

US targets Google break-up over advertising dominance

25 JAN 2023
Google

Google slated US government calls for it to be broken up, noting fresh attacks on its advertising business had been addressed by a previous court case and accusing authorities of trying to influence the sector.

The search giant denied claims made in a lawsuit filed by the US Department of Justice (DoJ) and eight states that it monopolised the advertising technology market, a move which included calls for Google to spin-off at least its online advertising exchange and server.

A Google representative told Mobile World Live the lawsuit was an attempt by the DoJ to pick winners and losers in the highly competitive advertising technology sector and the lawsuit largely duplicated a lawsuit by the Texas attorney general “much of which” was dismissed by a federal court in September 2022.

The DoJ claims Google “corrupted legitimate competition” through attempts to control digital advertising tools.

It asserts Google used “anticompetitive, exclusionary and unlawful means” to remove potential competition.

Google countered, stating the DoJ move would “slow innovation, raise advertising fees” and generally make life for small businesses and publishers difficult.

In a blog, Google VP of global ads Dan Taylor explained the DoJ is also pressing for a pair of acquisitions cleared more than a decade ago to be undone, while noting the company faced competition from rivals including Apple, Amazon and Microsoft.

Dan Taylor, VP of global ads at Google, stated the DoJ was demanding that it unwind two acquisitions that were reviewed by US regulators, including the DoJ, 12 years ago. He also stated competition from advertising companies including Apple, Amazon and Microsoft had increased over the ensuing years.

In 2020, the DoJ and 35 US states pressed for the break-up of Google in various lawsuits.

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Mike Robuck

Mike Robuck is the U.S. Editor at Mobile World Live. He joined the Mobile World Live staff in February of 2022. Prior to joining GSMA, he was editor of FierceTelecom and of Light Reading’s Telco Transformation microsite. He has a...

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