The US Department of Justice is ready to sue Alphabet Inc.’s Google. as soon as Tuesday about the search giant’s dominance in the digital advertising market, according to people familiar with the matter.
The case is expected to be filed in federal court before the end of the week, said the people, who asked not to be named to discuss confidential matters.
The Justice Department did not immediately respond to a request for comment. Google declined to comment.
The lawsuit would mark the Justice Department’s second antitrust case against the company, which is the No. 1 player in the $278.6 billion U.S. digital advertising market, controlling most of the technology used to buy, sell and serve online ads.
The lawsuit would also be the fifth major case in the US challenging the company’s business practices. The state’s attorney general has filed three separate lawsuits against Google, alleging that it dominates the market for online search, advertising technology and apps on the Android mobile platform in violation of antitrust laws.
The Mountain View, California-based company is No. 1 in the $626.86 billion global digital advertising market, according to 2023 estimates by research firm EMarketer, with the U.S. as the largest segment. Alphabet’s advertising operations are expected to generate $73.8 billion in US digital advertising revenue in 2023. Google runs ad buying services for marketers and ad selling for publishers, as well as a trading exchange where both sides complete transactions in lightning-fast auctions.
Google has argued that the market for online advertising is crowded and competitive. In court filings and congressional testimony, the company listed its competitors as other major players in the ad technology market such as Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp.
The department’s investigation into Google’s control of the ad tech market goes back to the Trump administration. The DOJ under Attorney General William Barr sued Google over its search business instead, alleging the company used exclusive distribution deals with wireless carriers and phone makers to lock out competition. The case will go to trial in September.
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